Two investment opportunities

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Reference no: EM131000900

Two investment opportunities are as follows:

For A: First cost = $150, Uniform annual benefit = 25, End-of-useful-life salvage value = 20, Useful life = 15 years

For B: First cost = $100, Uniform annual benefit = 22.25, End-of-useful-life salvage value = 0, Useful life = 10 years

At the end of 10 years, Alt. B is not replaced. Thus, the comparison is 15 years of A versus 10 years of B. If the MARR is 10%, which alternative should be selected?

Reference no: EM131000900

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