Question: Question 4: (30 PTS) For the cash flows shown in the table, use an annual worth (AW) comparison and an interest rate of 15% per
Question 4: (30 PTS) For the cash flows shown in the table, use an annual worth (AW) comparison and an interest rate of 15% per year. Alternative X Alternative Y Alternative z First cost, $ 25,000 51,000 130,000 Annual cost, S per year 9,000 3,500 2,500 Salvage value, s 3,000 11,000 Life, years 3 6 a) Draw the cash flow diagrams of alternatives X, Y and Z over their regular life. b) Determine the best option based on an annual worth analysis. (Hint: A. = Pl)
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