Question: 24. You must choose between four pieces of comparable equipment based on the cash flows given below. All four pieces have a life of
24. You must choose between four pieces of comparable equipment based on the cash flows given below. All four pieces have a life of 8 years. Parameter Equipment A C D First cost $25,000 $8,000 $2,500 $35,000 $6,000 $3,500 $20,000 $9,000 $2,000 $40,000 $5,000 $4,000 Annual costs Salvage value The interest is 12% compounded annually. Ignore taxes. The most preferable top two projects and the difference between their present worth values are most nearly: (A) A and C, $170 (B) B and D, $170 (C) A and C, $234 (D) B and D, $234
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