Production improvement program

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Reference no: EM131809022

A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows:

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For each alternative, the salvage value at the end of useful life is zero. At the end of 10 years, Alt. A could be replaced by another A with identical cost and benefits.

(a) Construct a choice table for interest rates from 0% to 100%.

(b) The MARR is 6%. If the analysis period is 20 years, which alternative should be selected?

Reference no: EM131809022

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