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For the following problem, what is the better option? Use the present worth analysis with an...

For the following problem, what is the better option? Use the present worth analysis with an interest rate of 10%.

A B
Initial cost $12,500 $8,900
Annual benefit $6,800 $2,500
Salvage value $5,000 $8,900
Life in years 2 years 3 years
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