Question: Problems 1 through 2 are based on the following cash flows at an interest rate of 10%/year. B Alternatives First Cost, $ AOC, $/year Salvage

 Problems 1 through 2 are based on the following cash flows

Problems 1 through 2 are based on the following cash flows at an interest rate of 10%/year. B Alternatives First Cost, $ AOC, $/year Salvage Value, $ Life, years A -100,000 -50,000 10,000 -900,000 -15,000 5,000,000 1. You have been asked to compare the alternatives on the basis of a present worth comparison. The present worth of alternative A and B are? O PWA = $-747,420 and PWB = $-2,524,200 O PWA = $-283,347 and PWB = $-1,050,000 O PWA = $-747,420 and PWB = $-1,050,000 OPWA = $-283,347 and PWB = $-2,524,200

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