The annual worth of alternative Y is closest to: (a) $50,000 (b) $76,625 (c) $90,000 (d) $92,000

The annual worth of alternative Y is closest to:
(a) $ˆ’50,000
(b) $ˆ’76,625
(c) $ˆ’90,000
(d) $ˆ’92,000

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