10% A 62 15 Machine B First Cost 71 77 O&M Costs 10 12 35 Salvage Value 15 Useful Life (yrs) 4 Annual Benefit 30 30 19 20 6 12 LCM What is PW of each alternative if interest rate is 10%. Which alternative is preferred? Use interest factor tables. Round numbers, no decimal points. Don't use $ sign. Example: 80 is correct, 80.4 or $80 is not correct format. PW Machine A PW Machine B PW Machine C Which is the preferred Alternative: A,B or C?

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
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Question
3
10%
A
62
15
Annual Benefit
Machine
First Cost
71
77
O&M Costs
10
12
35
30
30
Salvage Value
15
19
20
Useful Life (yrs) 4
6
12
LCM
What is PW of each alternative if interest rate is 10%. Which
alternative is preferred?
Use interest factor tables. Round numbers, no decimal points. Don't
use $ sign. Example: 80 is correct, 80.4 or $80 is not correct format.
PW Machine A
PW Machine B
PW Machine C
Which is the preferred Alternative: A,B or C?
Transcribed Image Text:10% A 62 15 Annual Benefit Machine First Cost 71 77 O&M Costs 10 12 35 30 30 Salvage Value 15 19 20 Useful Life (yrs) 4 6 12 LCM What is PW of each alternative if interest rate is 10%. Which alternative is preferred? Use interest factor tables. Round numbers, no decimal points. Don't use $ sign. Example: 80 is correct, 80.4 or $80 is not correct format. PW Machine A PW Machine B PW Machine C Which is the preferred Alternative: A,B or C?
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