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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
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
Transcribed Image Text: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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