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1-The present worth of the Crane A Capital investment and Annual expenses over 5 years is 2-The present worth of Crane B over 20 years is $ 3-The present worth of Crane A over 20 years is $ 4-The recommended alternative is

1-The present worth of the Crane A Capital investment and Annual expenses over 5 years is 2-The present worth of Crane B over 20 years is $ 3-The present worth of Crane A over 20 years is $ 4-The recommended alternative is

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A steel company is trying to decide between two industrial type cranes. Crane A and Crane B are mutually exclusive, and the economics estimates for each are shown below. Crane A Crane B Capital investment Annual expenses Salvage value Life, in years $15,000 $35,000 $5,000 $7,000 $4,000 20 If the MARR is 15%, 1-The present worth of the Crane A Capital investment and Annual expenses over 5 years is 65,295.83 39,765.3 -38,465.4 -14,085.8 Crane A 2-The present worth of Crane B over 20 years is $ 3-The present worth of Crane A over 20 years is $ 105,18.02 53,104.2 -66,296.5 Crane B 28,067.8 114 336.1 55,101.5 61,695.7 -40,6732 4-The recommended alternative is
Transcribed Image Text:A steel company is trying to decide between two industrial type cranes. Crane A and Crane B are mutually exclusive, and the economics estimates for each are shown below. Crane A Crane B Capital investment Annual expenses Salvage value Life, in years $15,000 $35,000 $5,000 $7,000 $4,000 20 If the MARR is 15%, 1-The present worth of the Crane A Capital investment and Annual expenses over 5 years is 65,295.83 39,765.3 -38,465.4 -14,085.8 Crane A 2-The present worth of Crane B over 20 years is $ 3-The present worth of Crane A over 20 years is $ 105,18.02 53,104.2 -66,296.5 Crane B 28,067.8 114 336.1 55,101.5 61,695.7 -40,6732 4-The recommended alternative is
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