You have been asked to compare the alternatives on the basis of a present worth comparison. The
Question:
(a) $724,320
(b) $530,520
(c) $388,950
(d) $72,432
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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