Question: Answer complete with full steps to get 100% feedback!! If you are the economic analyst, which alternative would you recommend when interest rate is 10%

Answer complete with full steps to get 100% feedback!!

If you are the economic analyst, which alternative would you recommend when interest rate is 10% per year.

Use present worth analysis technique only.

System Initial Cost Annual Operating Cost Annual repair cost Overhaul Cost in year 9 Salvage value Expected life (years)
New 45,000 $ 8,000 $ 300 $ 2100 $ 5,000 $ 16
Old 25,000 $ 10,000 $ 400 $ - 3200 $ 8

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