4. Ashley Furniture needs a new grinder. Compute the present worth for these mutually exclusive alternatives. i= 6%. Ashley uses a 10-year planning horizon. Alternative Initial Cost Annual Cost Salvage Value Life A $4500 $300 $500 5 years B $5500 $400 $0 10 years

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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4. Ashley Furniture needs a new grinder. Compute the present worth for these mutually
exclusive alternatives. i= 6%. Ashley uses a 10-year planning horizon.
Alternative
Initial Cost
Annual Cost
Salvage Value
Life
A
$4500
$300
$500
5 years
B
$5500
$400
$0
10 years
Transcribed Image Text:4. Ashley Furniture needs a new grinder. Compute the present worth for these mutually exclusive alternatives. i= 6%. Ashley uses a 10-year planning horizon. Alternative Initial Cost Annual Cost Salvage Value Life A $4500 $300 $500 5 years B $5500 $400 $0 10 years
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