Question: 18 The data of three mutually exclusive projects (X, Y, and 2) are given below. X Y nitial cost 10,000 12000 11,000 Annual benefit 6000

 18 The data of three mutually exclusive projects (X, Y, and

18 The data of three mutually exclusive projects (X, Y, and 2) are given below. X Y nitial cost 10,000 12000 11,000 Annual benefit 6000 5000 6,100 Annual operation cost 500 500 750 Salvage values at end of useful life 1000 3000 1,894 Useful life (years) 2 years 4 years 7 years The Interest rate is 10%. Use the present worth analysis to compare the alternatives over an analysis period of 5 years. Estimated market value (Terminalval ue) at end of year 5 analysis period 5,000 10,000 The net present worth (NPW-PWB-PWC) of Z is approximately equal to: 4000

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