There are two alternative projects to be chosen project a, Business Economics

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There are two alternative projects to be chosen project a

There are two alternative projects to be chosen: project A has a first cost of $110,000 and an annual operating cost of $60,000. Project B has a first cost of $175,000 and an annual operating cost of $35,000. If the company uses a 3-year recovery period for products and a MARR of 20% per year, which process is economically favored? Use an incremental ROR analysis

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