Question: Two alternatives are being considered which provide the same service and which have the same useful life of six years. Alternative A has an initial

Two alternatives are being considered which provide the same service and which have the same useful life of six years. Alternative A has an initial capital investment of $11,000, annual operating costs of $2,500, and a salvage value of $3,000. Alternative B has an initial capital investment of $18,000, annual operating costs of $1,500, and a salvage value of $9,000. If the companys MARR is 10%, what are the NPC values respectively?

A - $20194.73 and $19452.63

B - $21874.54 and $18765.63

C - $21777.65 and $19878.43

D - $19556.98 and $17965.21

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