In comparing the machines on a present worth basis, the present worth of machine Y is closest
Question:
In comparing the machines on a present worth basis, the present worth of machine Y is closest to:
(a) $–112,320
(b) $–122,060
(c) $–163,040
(d) $–175,980
The interest rate is 10% peryear.
Transcribed Image Text:
Machine X Machine Y Initial cost, $ Annual operating cost, $ per year20,00 Salvage value, S Life, years 80,000 -95,000 -15,000 30,000 10,000
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