The annual worth of perpetual service for alternative X is represented by the following equation: (a) 200,000(0.10)
Question:
(a) 200,000(0.10) 60,000 + 20,000(0.10)
(b) 200,000(AP,10%,5) 60,000 + 20,000(AF,10%,5)
(c) 200,000(AP,10%,5) 60,000 20,000(AF,10%,5)
(d) 200,000(0.10) 60,000 + 20,000(AF,10%,5)
Problem is based on the following cash flows and an interest rate of 10% per year.
Transcribed Image Text:
Alternative First cost, $ Annual cost, $/year Salvage value, $ |Life, years х -200,000 -800,000 -60,000 -10,000 20,000 5 150,000
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