9. Consider two alternatives: 62 A B Cost $650 $425 Uniform annual benefit 95 95 Useful life, in years Infinity X Assume that Alt. B is not replaced at the end of its useful life. If the MARR is 10%, what must be the useful life of B to make Alternatives A and B equally desirable?

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 28CE
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9- Consider two alternatives:
62
A
B
Cost
$650 $425
Uniform annual benefit 95
95
Useful life, in years Infinity X
Assume that Alt. B is not replaced at the end of its useful life. If the MARR is 10%, what must be the useful life of B to make Alternatives A and B equally desirable?
4
4 an
Transcribed Image Text:9- Consider two alternatives: 62 A B Cost $650 $425 Uniform annual benefit 95 95 Useful life, in years Infinity X Assume that Alt. B is not replaced at the end of its useful life. If the MARR is 10%, what must be the useful life of B to make Alternatives A and B equally desirable? 4 4 an
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