Compute the present worth for these mutually exclusive

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The Larkspur Furniture Company needs a new grinder. Compute the present worth for these mutually exclusive alternatives and identify which you would recommend given i = 6% per year. Larkspur uses a 10-year planning horizon.

	A	B
Initial Cost	$4500	$5500
Annual Costs	$300	$400
Salvage Value	$500	$0
Life	5 years	10 years

Reference no: EM131967935

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