Question: Maybe use notation table? Q 12 - 16) A county engineer is considering two mutually exclusive alternatives as part of a bridge improvement program. The

Maybe use notation table?

Maybe use notation table? Q 12 - 16) A county
Q 12 - 16) A county engineer is considering two mutually exclusive alternatives as part of a bridge improvement program. The alternatives have following cash flow: Alternative A Alternative B Installation cost ($) -15,000 -30,000 Annual operating cost ($) -3,500 -2,500 Salvage value () 4,000 2,000 Useful Life (years) 4 8 The minimum attractive rate of return (MARR) to be considered is 5%. Determine which alternative should be selected on the basis of a present worth comparison using the Least Common Multiple. 12. What is the Least Common Multiple of both alternatives? a. 2 year b. 4 years c. 6 years d. 8 years 13. Which of the following cash flow diagram is correct with regard to Alternative A based on the LCM? a. 3,500 4,000 b. P 0 0 8 4 8 -3.500 -15,000 -15,000 -15,000 C. 4,000 d. 4,000 4.000 0 0 8 ' 8 -3,500 -3, -15,000 -15,000 -15,000 14. What is the present worth (Net Present Value) of the Alternative A? (Choose the closest answer) a. $-10,193 b. $-24,120 c. $5-43,964 d. $-54,577

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