The cash flows for 2 mutually exclusive alternatives are shown below. Determine which should be selected using annual worth analysis and 6% MARR per year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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please draw a cash flow diagram if possible

The cash flows for 2 mutually exclusive alternatives are shown below. Determine which
should be selected using annual worth analysis and 6% MARR per year.
Vender A
Vender B
Initial Cost
$ -200,000
S-550,000
Annual Cost
S-50,000
S-20,000
Salvage Value
$25,000
$0
Service Life
10 years
15 years
Transcribed Image Text:The cash flows for 2 mutually exclusive alternatives are shown below. Determine which should be selected using annual worth analysis and 6% MARR per year. Vender A Vender B Initial Cost $ -200,000 S-550,000 Annual Cost S-50,000 S-20,000 Salvage Value $25,000 $0 Service Life 10 years 15 years
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