Question: not using excel please solve: 1. There are three alternatives being considered. Each has a different life span and initial cost. Alternative 1 Alternative 2

not using excel please solve: not using excel please solve: 1. There are three alternatives being considered.

1. There are three alternatives being considered. Each has a different life span and initial cost. Alternative 1 Alternative 2 Alternative 3 -20,000 First cost 0 -2,000 -1000 -200 -4,000 Annual cost per year 2.500 1,300 8,000 Annual income per year Life span 5 10 8 a) Write the AW equation for each alternative b) Based on interest rate of 10% and an annual worth analysis, which alternative should you choose

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