Question: (2) Alternative A is being compared with Alternative B. Based on the following information, compare the two alternatives based on the capitalized cost (CC). The
(2) Alternative A is being compared with Alternative B. Based on the following information, compare the two alternatives based on the capitalized cost (CC). The interest rate is 6 % per year, compounded annually (a) Include a cash flow diagram of each alternative. (b) Indicate which alternative to select based on the analysis. Alternative A Alternative B -$85,000 First Cost Annual Operating and Maintenance Cost Annual Income Salvage Value Life, years $430,000 -$10,000 $65,000 $43,000 infinity $5,000 $35,000 $8,500 15 Capitalized cost of alternative A = Capitalized cost of alternative B = Alternative A or B should be chosen (circle the correct one)
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