5500

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Determine Which Project should be funded using a present worth analysis. Project 1: First cost = 400,000; AOC = 25,000 ; salvage value of 75,000 and a service life of 6 years. Project 2: First cost = 700,000; AOC = 15,000 ; salvage value of 150,000 and a service life of 12 years. Use i=10% for both.