5-66 Six mutually exclusive alternatives, A-F, are being examined. For a 9% interest rate, which alternative should be selected? What is the highest present worth? Each alternative has a 6- year useful life. Alternative Initial Cost 20,000 A 35,000 1303GY B C D E F 55,000 60,000 80,000 100,000 Uniform Annual Benefit 6,000 9,250 13,380 13,780 20,320 24,320

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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5-66 Six mutually exclusive alternatives, A-F, are being examined. For a 9% interest rate, which
alternative should be selected? What is the highest present worth? Each alternative has a 6-
year useful life.
Alternative
A
BUDE
F
Initial Cost
20,000
35,000
55,000
60,000
80,000
100,000
Uniform Annual Benefit
6,000
9,250
13,380
13,780
20,320
24,320
Transcribed Image Text:5-66 Six mutually exclusive alternatives, A-F, are being examined. For a 9% interest rate, which alternative should be selected? What is the highest present worth? Each alternative has a 6- year useful life. Alternative A BUDE F Initial Cost 20,000 35,000 55,000 60,000 80,000 100,000 Uniform Annual Benefit 6,000 9,250 13,380 13,780 20,320 24,320
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