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A gasoline driven pump and an electric power pump are being considered for use in...

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Accounting

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A gasoline driven pump and an electric power pump are being considered for use in a mine for a period of 10 years. The data available are : First Cost Life (years) Salvage value Annual Operating cost Annual Repairs Annual axes (%of FC) Gasoline 12,000 5 1,000 3,200 600 3% Electric 25,000 10 2,000 1,800 400 3% If the money is worth 12% compounded Annually, which would you recommend? Solve the problems using the following methods : a.) ROR Method b.) AWC Method C.) EUAC

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