1. Compare the following alternatives on the basis of Present worth Analysis at an interest rate of 4% per year. (hand calculation Inorganic Based Feedstock Petroleum Based Feedstock First Cost, $ Annual Operating cost, $ /year Annual Revenues, $/year -2,420,000 -50,000 310,000 -1,520,000 -70,000 294,000 Salvage Value, $ Life years 61,000 38,000 6. 4. You should consider Least Common Multiple of (6 and 4) which is 12 years in your analysis instead of 4 or 6 years!

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Can someone please solve this question using hand calculations only? PLEASE AND THANK YOU!!!
1. Compare the following alternatives on the basis of Present worth Analysis at an interest
rate of 4% per year
(hand calculation
Inorganic Based
Feedstock
Petroleum Based
Feedstock
First Cost, $
Annual Operating cost, $ /year
Annual Revenues, $/year
-2,420,000
-50,000
310,000
-1,520,000
-70,000
294,000
Salvage Value, $
Life years
61,000
38,000
6.
4.
You should consider Least Common Multiple of (6 and 4) which is 12 years in your analysis
instead of 4 or 6 years!
Transcribed Image Text:1. Compare the following alternatives on the basis of Present worth Analysis at an interest rate of 4% per year (hand calculation Inorganic Based Feedstock Petroleum Based Feedstock First Cost, $ Annual Operating cost, $ /year Annual Revenues, $/year -2,420,000 -50,000 310,000 -1,520,000 -70,000 294,000 Salvage Value, $ Life years 61,000 38,000 6. 4. You should consider Least Common Multiple of (6 and 4) which is 12 years in your analysis instead of 4 or 6 years!
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