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By hand, engineering economy Problem 1: (50 points) Annual expenses for two...

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Accounting

imageBy hand, engineering economy
Problem 1: (50 points) Annual expenses for two alternatives have been estimated on different bases as follows: Alternative AAlternative B Annual Expenses Annual Expenses End of Estimated in Estimated in Real Year Actual Dollars Dollars with b 0 $120,000 132,000 48,000 160,000 $100,000 110,000 120,000 130,000 4 If the average general price inflation rate is expected to be 4% per year and the real rate of interest is 8% per year, show which alternative has the least negative equivalent worth in the base period

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