Two hazardous environment facilities are beingevaluated,
Chapter , Problem 7-75(choose chapter or problem)
Two hazardous environment facilities are beingevaluated, with the projected life of each facil-ity being 10 years. The cash flows are asfollows: Alt.AAlt.BFirst cost $615,000 $300,000Maintenance and 10,000 25,000operating costAnnual benefits 158,000 92,000Salvage value 65,0005,000The company uses a MARR of 15%. Using rate ofreturn analysis,which alternative should be selected?
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