Annual interest rate= 5% and design life for each option = 10 years. All amounts are...

 

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Annual interest rate= 5% and design life for each option = 10 years. All amounts are in thousand dollars. Show all steps. (a) Rank the options from the best to the worst based on the NPW method. (b) Rank the options from the best to the worst based on the EUAW method. Option A B C Initial Cost 10 15 8 Annual Cost 0.5 0.2 1.0 16 Annual Benefit 0.5 1.0 0.9 ab option Salvage Value 0.4 0.8 1.1 Annual interest rate= 5% and design life for each option = 10 years. All amounts are in thousand dollars. Show all steps. (a) Rank the options from the best to the worst based on the NPW method. (b) Rank the options from the best to the worst based on the EUAW method. Option A B C Initial Cost 10 15 8 Annual Cost 0.5 0.2 1.0 16 Annual Benefit 0.5 1.0 0.9 ab option Salvage Value 0.4 0.8 1.1

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