One of the two alternatives below must be implemented. For a discount rate of 12%,...

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Accounting

One of the two alternatives below must be implemented. For a discount rate of 12%, determine which of the two you will recommend and why?

Alternative A Alternative B

Initial Cost $160,000 $300,000

Life Span 8 years 15 years

Salvage Value $20,000 $50,000

Annual Operating Cost $20,000 $10,000

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