A company has the following alternatives for investment. Using the incremental B/C method. determine which alternative...
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A company has the following alternatives for investment. Using the incremental B/C method. determine which alternative should be selected. Assume i = 10%. Cost new Annual O&M Cost Annual income Estimated life (yr) A $20,000 $1,000/yr $5,600/yr 7 B $24,000 $800/yr $5,700/yr 8 с $16,000 $2,200/yr $5,400/yr 9 Note: Incremental B/C method should be used in the solution. Solutions by using other methods will not be graded. A company has the following alternatives for investment. Using the incremental B/C method. determine which alternative should be selected. Assume i = 10%. Cost new Annual O&M Cost Annual income Estimated life (yr) A $20,000 $1,000/yr $5,600/yr 7 B $24,000 $800/yr $5,700/yr 8 с $16,000 $2,200/yr $5,400/yr 9 Note: Incremental B/C method should be used in the solution. Solutions by using other methods will not be graded.
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