Use annual cash flow analysis

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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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