Question: You are a small business owner considering two alternatives for your phone system. The discount rate is 8%. Which alternative would you pick? Plan A

You are a small business owner considering two alternatives for your phone system.

You are a small business owner considering two alternatives for

The discount rate is 8%. Which alternative would you pick?

Plan A Plan B Initial cost (S) 50,000 120,000 Annual maintenance cost (S 9,000 6,000 10,000 20,000 20 years 40 years Salvage value (S) Life

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