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