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What is the equivalent annual cost

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The government is requiring your new company to install pollution cost features throughout operations. There are two possibilities for meeting these guidelines, Solar or Recycle. Solar costs $10,000 today and then $16,000 for each of the next 20 years. Recycle costs $2,000 today and then $17,000 for the next 6 years. The discount rate for both projects is 8%. What is the Equivalent Annual Cost for each project? Should Solar or Recycle be selected?

Reference no: EM132420365

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