The capitalized cost of alternative B is nearest: (a) $590,000 (b) $625,000 (c) $734,000 (d) $850,000 Problem
Question:
(a) $590,000
(b) $625,000
(c) $734,000
(d) $850,000
Problem is based on the following cash flows for alternatives A and B at an interest rate of 10% per year.
Transcribed Image Text:
Alternative First cost, $ AOC, $/year Salvage value, $ Life, years B -90,000 -750,000 - 50,000 -10,000 2,000,000 8,000 5
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