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  3. alternative uno has a first cost of $10,000 and an

Alternative Uno has a first cost of $10,000 and annual expenses of $3000, whereas Alternative...

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Accounting

Alternative Uno has a first cost of $10,000 and annual expenses of $3000, whereas Alternative Dos has a first cost of $35,000, annual expenses of $2000, and a recurring cost of $5000 every 10 years. If both alternatives have an infinite life, which of the following equations can be used to solve for the rate of return on the incremental investment?

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=-$25,000+ $1000/i- $5000(A/F, 1, 10)/ 0 = - $25,000 + $ 1000/i + $5000(A/P, i, 10)/ 0 = - $25,000 + $1000/i - $5000(A/F, i, 10) 0 = +$25,000 - $1000/i + $5000(A/F, I, 10)

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