3 eBook Problem 14.030: Compare alternatives by calculating their capitalized cost Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use /-9% per year and f 3.5% per year. Alternative First cost, $ AOC. $ per year Salvage value, $ Life, years -15,500,000 -25,000 105,000 The capitalized cost for alternative X is $[ The capitalized cost for alternative Yi Select alternative X -12,500,000 -10,000 82.000 10

3 eBook Problem 14.030: Compare alternatives by calculating their capitalized cost Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use /-9% per year and f 3.5% per year. Alternative First cost, $ AOC. $ per year Salvage value, $ Life, years -15,500,000 -25,000 105,000 The capitalized cost for alternative X is $[ The capitalized cost for alternative Yi Select alternative X -12,500,000 -10,000 82.000 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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