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

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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