Question: NO EXCEL 1. Two mutually exclusive alternatives are being considered for the production equipment at a tissue paper factory. The firm's MARR is 10% per

NO EXCEL

1. Two mutually exclusive alternatives are being considered for the production equipment at a tissue paper factory. The firm's MARR is 10% per year. The estimated cash flows for each alternative are the following. (10ptos) Alternative A B Capital investment $4,200,000 $7,000,000 Annual revenues $6,000,000 $8,000,000 Annual costs $4,000,000 $5,100,000 Market value at $420,000 $600,000 end of useful life Useful life (years) 8 8 a. What is the Present Worth of Alternative A,B ? b. Which alternative should be selected

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