Assume that alt b is not replaced at the end of its useful


Consider 2 alternatives A and B

Cost: A=$500 B=$300

Uniform annual benefit: A=$75 B=$75

Useful life (years): A=infinity B=X

Assume that alt. B is not replaced at the end of its useful life. if the MARR is 10% what must be the useful life of B to make Alternatives A and B equally desirable?

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Business Economics: Assume that alt b is not replaced at the end of its useful
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