Compare two alternatives, A and B, on the basis of a present worth evaluation using i=9%...

 

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Compare two alternatives, A and B, on the basis of a present worth evaluation using i=9% per year and a study period of 8 years. Alternative First Cost Annual Operating Cost Overhaul in Year 4 A $-18,000 $-6,000 $0 Salvage Value Life $2,000 4 years The present worth of alternative A is $ Alternative A is selected. B $-39,000 $-9,000 $-1,950 $7,800 8 years | and that of alternative B is $| Compare two alternatives, A and B, on the basis of a present worth evaluation using i=9% per year and a study period of 8 years. Alternative First Cost Annual Operating Cost Overhaul in Year 4 A $-18,000 $-6,000 $0 Salvage Value Life $2,000 4 years The present worth of alternative A is $ Alternative A is selected. B $-39,000 $-9,000 $-1,950 $7,800 8 years | and that of alternative B is $|