Refer back to Problem 12.22 in which Merry Metalworks is considering two LAN alternatives. (a) For alternative A, by how much will the installation cost have to rise before the annual worth becomes zero? In other words, what is the break-even installation cost? Is the break-even level within or above the range of likely values Merry Metalworks has specified? (b) What is the break-even annual benefit for alternative A? Use the average installation costs. Is the break-even level within or above the range of likely values Merry Metalworks has specified?
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