Question: Problem 2 (20 pts)-Given three alternatives A, B and C in the table below with infinite analysis period. Initial cost S1500 $900 S1200 Annual benefit
Problem 2 (20 pts)-Given three alternatives A, B and C in the table below with infinite analysis period. Initial cost S1500 $900 S1200 Annual benefit $800 200-180 Salvage value l SS00-$900 Life in years 2 years 3 Years Infinity Using present worth analysis method, determine the following (a) The NPW (Net Present Worth) of alt. A is A. $1.342 B. $1,738 C. $1,100 D $600 (b) The NPW (Net Present Worth) of alt. B is A. $1,342 B. $1,738 C. $1,100 D $600 (c) The NPW (Net Present Worth) of alt. C is A. $1,342 B. S1.738 C$1,100 D $600 d) The best alternative among the three alternatives using the PW analysis is A. Alt. A B. Alt. B C. Alt. C D. Either alt. B or alt.C
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