5.24 For the cash flows below, use an annual worth comparison to determine which alternative is best at an interest rate of 1% per month. Y Z First cost, $ -90,000 -400,000 -900,000 M&O cost, $/ month -30,000 -20,000 -13,000 Overhaul every 10 years, $ -80,000 Salvage value, $ 7000 25,000 200,000 Life, years 3 10

5.24 For the cash flows below, use an annual worth comparison to determine which alternative is best at an interest rate of 1% per month. Y Z First cost, $ -90,000 -400,000 -900,000 M&O cost, $/ month -30,000 -20,000 -13,000 Overhaul every 10 years, $ -80,000 Salvage value, $ 7000 25,000 200,000 Life, years 3 10

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

5.24 For the cash flows below, use an annual worth comparison to determine which alternative is best at
an interest rate of 1% per month.
Y
Z
First cost, $
-90,000
-400,000
-900,000
M&O cost, $/ month
-30,000
-20,000
-13,000
Overhaul every 10 years, $
-80,000
Salvage value, $
7000
25,000
200,000
Life, years
3
10

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