5. Given: Assume i = 10% per year Alternative 1 Electric Power Alternative 3 Solar Power P6000 P50 P100 5 years Alternative 2 Gas Power First Cost: P2500 P3500 Annual Operating Cost: P900 P700 Sal. Value: P200 P350 Life: 5 years 5 years Which Alternative should be selected based upon a present worth analysis?

5. Given: Assume i = 10% per year Alternative 1 Electric Power Alternative 3 Solar Power P6000 P50 P100 5 years Alternative 2 Gas Power First Cost: P2500 P3500 Annual Operating Cost: P900 P700 Sal. Value: P200 P350 Life: 5 years 5 years Which Alternative should be selected based upon a present worth analysis?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5 with complete solution

5. Given:
Assume i = 10% per year
Alternative 1
Electric Power
Alternative 2
Gas Power
First Cost:
P2500
P3500
Annual Operating Cost: P900
P700
Sal. Value:
P200
P350
Life:
5 years
5 years
Which Alternative should be selected based upon a present worth analysis?
Alternative 3
Solar Power
P6000
P50
P100
5 years

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