Data for three mutually exclusive alternatives are given in the table below. Assume a life of...
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Data for three mutually exclusive alternatives are given in the table below. Assume a life of 7 years, Alternatives Initial Cost Uniform Annual Benefit Salvage Value Present Worth $8,000,00 $6,000.00 $4,000.00 $2,000.00 $0.00 0% ($2,000.00) ($4,000.00) 5% A $7,500 $2,000 $500 10% 15% B $5,000 $1,500 SO Interest Rate C $1,500 $500 $100 <-A B 45% Based on the graph above, construct a Choice Table. Please include interest rates rounded to the hundredth (2 decimal places). Find the exact interest rates. Do not forget the "do nothing" alternative. Data for three mutually exclusive alternatives are given in the table below. Assume a life of 7 years, Alternatives Initial Cost Uniform Annual Benefit Salvage Value Present Worth $8,000,00 $6,000.00 $4,000.00 $2,000.00 $0.00 0% ($2,000.00) ($4,000.00) 5% A $7,500 $2,000 $500 10% 15% B $5,000 $1,500 SO Interest Rate C $1,500 $500 $100 <-A B 45% Based on the graph above, construct a Choice Table. Please include interest rates rounded to the hundredth (2 decimal places). Find the exact interest rates. Do not forget the "do nothing" alternative.
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Here is the choice table with exact interest rates rounded to two ... View the full answer
Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
Posted Date:
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