Use annual cash flow analysis

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Reference no: EM13892110

Use annual cash flow analysis with an 8-year analysis period and a 5% interest rate to determine which alternative should be selected if their annual operating costs are the same:

Alt. A Alt. B

First cost $5,300 $10,700

Uniform annual benefit $2,000 $2,500

End-of-Life Salvage Value $0 $0

Useful life, in years 4 8

Reference no: EM13892110

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