Instructions:

1. Read and complete the attached assignment.
2. Submit the completed assignment using Word (.doc) or Excel (.xls) documents. Handwritten submittals will not be accepted.
3. Show calculations.
4. Check the Rubric.

Problem:

Determine the present worth of the following alternatives. Use an interest rate of 6%. Include a Cash Flow Diagram for each:

	Alt. X	Alt.Y
Initial cost	$12,500	$8,900
Annual benefit	$6,800	$2,000
Salvage value	$5,000	$8,900
Life in years	2 years	3 Years