Question: 6.5 Compare the alternatives shown in the table below on the basis of a future worth analysis, (FWA) using an interest rate of 8% per
6.5 Compare the alternatives shown in the table below on the basis of a future worth analysis, (FWA) using an interest rate of 8% per year.
| 6.5 |
Alternative X |
Alternative Y |
|
First Cost |
-$69,000 |
-$90,000 |
|
Operating Cost |
-$12,000/YR |
-$7,500/YR |
|
Salvage Value |
$9,000 |
$3,000 |
|
Useful Life |
3 Years |
6 Years
|
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