You have been asked to compare the alternatives on the basis of a present worth comparison. The

Question:

You have been asked to compare the alternatives on the basis of a present worth comparison. The PW of alternative A is closest to:

(a) $ˆ’724,320

(b) $ˆ’530,520

(c) $ˆ’388,950

(d) $ˆ’72,432


Problem is based on the following cash flows for alternatives A and B at an interest rate of 10% per year.

Alternative First cost, $ AOC, $/year Salvage value, $ Life, years B -90,000 -750,000 - 50,000 -10,000 2,000,000 8,000 5

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

Question Posted: