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8-4: A firm is considering two alternatives that have no salvage value. A Initial Cost $10,700...

8-4: A firm is considering two alternatives that have no salvage value.



A


Initial Cost $10,700


Uniform Annual Benefits 2,100


Useful life, in years 8



B


Initial Cost $5,500


Uniform Annual Benefits 1,800


Useful life, in years 4


At the end of 4 years, another B may be purchased with the same cost, benefits, and so forth.

What is the discounted payback period of A?

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Expert Solution

jeff jeffy answered 2 years ago
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