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Perform a future value analysis for the following investment alternatives, using an interest rate of 8%...

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Economics

Perform a future value analysis for the following investmentalternatives, using an interest rate of 8% and a useful life of 10years.

First cost
Annual benefits
Annual costs
Update cost in year 5
Residual value

Team A
$ 21,500
$ 3,000 the first year with a $ 500 annual increase
$ 2,000
$ 3,200
$ 4,000

Team B
$ 27,000
$ 4,000 the first year with a $ 400 annual increase
$ 3,500
$ 4,500
$ 3,500

Answer & Explanation Solved by verified expert
4.0 Ratings (671 Votes)
ANSWER I 8 AND N 10 YEARS 1 Team a pv first cost annual benefitspain increase in annual benefitspgin annual costspain update cost in year 5pfin residual    See Answer
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