Question: Use incremental analysis instead of infinite analysis. Show how this can be evaluated on Excel. 3-26 Consider the following alternatives: A Initial cost $10,000 $15,000

Use incremental analysis instead of infinite analysis. Show how this can be evaluated on Excel.

3-26 Consider the following alternatives: A Initial cost $10,000 $15,000 $20,000 Uniform annual 5548 1000 1762 benefit Useful life (years) 20 Infinite Alternatives B and C are replaced at the end of their useful lives with identical replacements. Use an infinite analysis period. (a) Construct a choice table for interest rates from 0% to 100%. (b) At an 8% interest rate, which alternative is better? 3-26 Consider the following alternatives: A Initial cost $10,000 $15,000 $20,000 Uniform annual 5548 1000 1762 benefit Useful life (years) 20 Infinite Alternatives B and C are replaced at the end of their useful lives with identical replacements. Use an infinite analysis period. (a) Construct a choice table for interest rates from 0% to 100%. (b) At an 8% interest rate, which alternative is better

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