Question: Uncle Elmo needs to replace the family privy. The local sanitary engineering firm has submitted two alternative structural proposals with respective cost estimates as shown.

Uncle Elmo needs to replace the family privy. The local sanitary engineering firm has submitted two alternative structural proposals with respective cost estimates as shown. Which construction should Uncle Elmo choose if his minimum attractive rate of return is 6%. Use both a present worth and annual cost approach in your comparison.

Masonite Brick $1000 10 100 5 First cost Annual maintenance Saivage value $250 20 10 Se rvice life, in years

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