Question: Use Present Worth Analysis to determine whether Alternative A or B should be chosen. Items are identically replaced at the end of their useful lives.

 Use Present Worth Analysis to determine whether Alternative A or B

Use Present Worth Analysis to determine whether Alternative A or B should be chosen. Items are identically replaced at the end of their useful lives. Assume an interest rate of 4% per year, compounded annually. Alternative B. because it only incurs the initial cost once every three years instead of every two years Alternative B. because it costs $313.84 more than Alternative A. in terms of present worth Alternative A. because it costs $313.84 less than Alternative B. in terms of present worth Alternative A. because its present worth is positive

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