Find the annual equivalent cost

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Reference no: EM13847082

Find the Annual equivalent cost for the the following two alternatives and show all work.

A1: Cost= $100,000, salvage value after 5 years = $10,000, operating cost = $22,000/year.

A2: Cost= $140,000, salvage value after 5 years = $12,000, operating cost = $10,000/year. Interest rate is equal to 10% and both alternatives are expected to last for 5 years.

Reference no: EM13847082

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