If both alternatives have a five-year life the rate of


Alternative A has a first cost of $9,000, an annual operating cost of $5,000 and a salvage value of $2,000. Alternative B has an initial cost of $25,000, an annual operating cost of $1,000 and a salvage value of $12,000. If both alternatives have a five-year life, the rate of return on the incremental investment is nearly what percentage?

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Operation Management: If both alternatives have a five-year life the rate of
Reference No:- TGS02520487

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