1.(4 points) Ross Inc. is considering two equipment alternatives to increase its production volume. The respective financial estimates for each alternative are as follows:
Initial Cost Annual Benefit Salvage Value Overhaul every 10 yrs Useful Life (Years) Equipment A $450,000 $60,000 $0 $20,000 00 (Forever) Equipment B $80,000 $24,000 $12.000 10 If the interest rate is 10%, which equipment should Ross Inc, select based on an annual worth analysis?
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