There are two options P and M. With 15% MARR under 20 years study period, which alternative should be chosen based on the following conditions and why? For P, the initial cost is $14k, the yearly cost is $14K, the salvage is $8k and the useful life is calculated as 5yrs. For M, the initial cost is $65k, the yearly cost is $9K, the salvage is $13k and the useful life is calculated as 20 yrs. Please show all work.

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To determine which alternative P or M to choose based on the given conditions we need to calculate t... View the full answer