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Question: you have identified three alternatives for a small project at...

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You have identified three alternatives for a small project at your plant. The interest rate is 4.8808848 % per semiannual.

Alternative S Initial Cost, S Salvage Value, Annual Cost, Annual Revenue,$ Life, years F H 100,000 180,000 120,000 80,000 12,000 18,000 10,000 16,000 12,000 60,000 86,000 70,000

a) (15 pts) What is the LCM of the life of thr ee alternatives if alternative H has a project life of 11 year? Which alternative should be selected?

b) Which alternative should be selected if alternative H has an infinite life?

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