THE PRESENT WORTH COST (PWC) METHOD In comparing alternatives by this method determine the present worth ofthe net cash outflows for each alternative for the same period of time. The alternative with least present worth of cost is selected in this method, the present worth of all cash flows each alternative is computed for the same study period ExampleEconomic estimates for two altematives are follows: Economic estimates for two altematives are follows: A B I FC 200.000 300.000 Anmal Op. Cost 32,000 24,000 Labor Cost 50,000 32,000 Insurance 3% 3% Payroll Tax 4% 4% Life 10 10 If the MARR= 15%, compare the two altematives. For altematives with the same lives, the study period will lives of the altematives. Using PWC method determine the PWC of cost for each altemative