1. The alternatives shown are to be compared on the basis of their present worth values. At an interest rate of 10% per year, the values of n that you should use in the uniform series factors to make a correct comparison by the present worth method are: A B first cost, 5 annual operating cost, S salvage value, S life, years -50000 -90000 -10000 -4000 13000 15000 6. B. -151027.4 A. -175306.4 А. A. -151027.4 B. -175306.4 OC. A. -151127.4 B. -175316.4 B.

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
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1. The alternatives shown are to be compared on the basis of their present
worth values. At an interest rate of 10% per year, the values of n that you
should use in the uniform series factors to make a correct comparison by the
present worth method are:
A
B
first cost, 5
annual operating cost, S
salvage value, S
life, years
-50000
-90000
-10000
-4000
13000
15000
6.
B. -151027.4 A. -175306.4
А.
A. -151027.4 B. -175306.4
OC.
A. -151127.4 B. -175316.4
B.
Transcribed Image Text:1. The alternatives shown are to be compared on the basis of their present worth values. At an interest rate of 10% per year, the values of n that you should use in the uniform series factors to make a correct comparison by the present worth method are: A B first cost, 5 annual operating cost, S salvage value, S life, years -50000 -90000 -10000 -4000 13000 15000 6. B. -151027.4 A. -175306.4 А. A. -151027.4 B. -175306.4 OC. A. -151127.4 B. -175316.4 B.
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