Construct a choice table for interest rates

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Reference no: EM131808928

Consider the following alternatives:

1874_identical replacements.png

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?

Reference no: EM131808928

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