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3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual worth analysis to decide which is the most desirable alternative. Alternative First Cost A B $700,000 $1,700,000 O&M costs 18,000 29,000 Annual benefit 154,000 303,000 Salvage value 142,000 210,000 Useful life, in years 10 20

3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual worth analysis to decide which is the most desirable alternative. Alternative First Cost A B $700,000 $1,700,000 O&M costs 18,000 29,000 Annual benefit 154,000 303,000 Salvage value 142,000 210,000 Useful life, in years 10 20

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 3CQQ
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Engineering Econ HW5 Q1

3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual worth analysis to decide which is the most desirable alternative. Alternative First Cost A B $700,000 $1,700,000 O&M costs 18,000 29,000 Annual benefit 154,000 303,000 Salvage value 142,000 210,000 Useful life, in years 10 20
Transcribed Image Text:3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual worth analysis to decide which is the most desirable alternative. Alternative First Cost A B $700,000 $1,700,000 O&M costs 18,000 29,000 Annual benefit 154,000 303,000 Salvage value 142,000 210,000 Useful life, in years 10 20
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