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Business, 18.03.2021 23:00 Eylul30

g Use Present Worth Analysis to determine whether Alternative A or B should be chosen. Items are identically replaced at the end of their useful lives. Assume an interest rate of 6% per year, compounded annually. Alternative A Alternative B Initial Cost 350 985 Annual Benefit 80 226 Salvage Value 160 186 Useful Life (yrs) 2 3 Group of answer choices Alternative B, because it only incurs the initial cost once every three years instead of every two years Alternative B, because it costs $250.00 more than Alternative A, in terms of present worth Alternative A, because its present worth is positive Alternative A, because it costs $250.00 less than Alternative B, in terms of present worth

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