Consider three mutually exclusive alternatives andthe

Chapter , Problem 8-17

(choose chapter or problem)

Consider three mutually exclusive alternatives andthe do-nothing alternative.AB CInitial cost$770 $1406 $2563Uniform annual 420 420 420benefitUseful life (years2 4 8Rate of return 6.0% 7.5% 6.4%The analysis period is 8 years. At the end of 2, 4, and6 years, Alt.Awill have an identical replacement.AlternativeBwill have a singleidentical replacementat the end of 4 years. Construct a choice table forinterest rates from 0% to 100%

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