Using a 10 interest rate and an annual cash flow analysis, Business Economics

Using a 10 interest rate and an annual cash flow analysis

Consider the following two mutually exclusive alternatives:

741_annual cash flow analysis.png

Alternative B may be replaced with an identical item every 20 years at the same $15,000 cost and will have the same $2400 uniform annual benefit. Using a 10% interest rate and an annual cash flow analysis, which alternative should be selected?

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Business Economics: Using a 10 interest rate and an annual cash flow analysis

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Business Economics: Using a 10 interest rate and an annual cash flow analysis

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