3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual cash flow analysis to decide which is the most desirable alternative. B $700,000 $1,700,000 18,000 29,000 +900/yr +750/yr 154,000 303,000 142,000 210,000 20 First cost O&M costs (yr 1) + Cost gradient Annual benefit Salvage value Useful life, in years 10
3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an interest rate of 15% and annual cash flow analysis to decide which is the most desirable alternative. B $700,000 $1,700,000 18,000 29,000 +900/yr +750/yr 154,000 303,000 142,000 210,000 20 First cost O&M costs (yr 1) + Cost gradient Annual benefit Salvage value Useful life, in years 10
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an
interest rate of 15% and annual cash flow analysis to decide which is the most
desirable alternative.
B
$700,000 $1,700,000
18,000 29,000
+900/yr +750/yr
154,000 303,000
142,000 210,000
20
First cost
O&M costs (yr 1)
+ Cost gradient
Annual benefit
Salvage value
Useful life, in years 10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4acd69e4-ff3f-440d-b60a-864d20e30666%2F63bdf318-a20e-4e89-af2c-40cd60ed8a3e%2F3jso2ow_processed.png&w=3840&q=75)
Transcribed Image Text:3. Carp, Inc. wants to evaluate two methods of packaging their products. Use an
interest rate of 15% and annual cash flow analysis to decide which is the most
desirable alternative.
B
$700,000 $1,700,000
18,000 29,000
+900/yr +750/yr
154,000 303,000
142,000 210,000
20
First cost
O&M costs (yr 1)
+ Cost gradient
Annual benefit
Salvage value
Useful life, in years 10
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