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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
X
-15,500,000
-25,000
105,000
00
The capitalized cost for alternative X is $[
The capitalized cost for alternative Y is $[
Select alternative X
Y
-12,500,000
-10,000
82,000
10
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