Question: Show how you would calculate the maximum initial cost that alt B can have before it is no longer the preferred alternative for the following

Show how you would calculate the maximum initial cost that alt B can have before it is no longer the preferred alternative for the following problem: 


A  Initial Cost 3000  Uniform annual benefit 400

B Inital Cost  2000 Uniform  annual benefit 500 



Assume a 20 year life, 7% MARR, no salvage value. Use shorthand economic form and use NPW as the evaluation criterion.

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