Use future worth analysis with equal lives assumption

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Reference no: EM131062866

A company is deciding on investing in one of two mutually exclusive pieces of equipment: Equipment A and Equipment B. If the firm expects a 8% per year return on investment, which of the following alternatives should they choose. Explain. Use future worth analysis with equal lives assumption. Equipment A Equipment B First cost, $ -$15,000 -$20,000 Salvage value, $ $3,000 $4,000 Annual maintenance, $/year -$1,200 -$1,500 Life, years 4 6

Reference no: EM131062866

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