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Use the least common multiple of useful lives as analysis period to compare the following two alternatives and determine which alternative is better and why. Assume that the interest rate is 10%.

Alternatives: A B

First cost $4000 $6000

Uniform annual benefit $3000 $3000

Salvage value $0 $0

Useful life, in years 5 10

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92709528

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