Financial data related to three different
alternatives are provided in the table below. Assume that
alternatives are replaced at the end of their useful lives. MARR =
8%

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Question: Financial data related to three different alternatives are provided in the table below. Assume th…
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Data

P

Q

R

Initial Cost

$5,000

$1,000

$2,500

Uniform Annual Benefits

$650

$0

$ 350

Salvage Value

$5,000

$1,760

$2,000

Useful Life in Years

20

5

10

The best alternative among the three alternatives is
_______________.

A.

Alt. P

B.

Do Nothing

C.

Alt. Q

D.

Alt. R

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