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Alternatives are mutually exclusive

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The following two alternatives are mutually exclusive. Which one will you select if your MARR is 15% per year? Use rate of return analysis.

Alternative

Initial Cost

Annual Benefit

Life, years

Ordinary (O)

$30,000

$9,000

5

Above average (AA)

33,000

9,000

6

Reference no: EM13888122

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