6.26 The tabulation of the incremental cash flows be- tween alternatives A and B is shown. Alternative A has a 3-year life and alternative B a 6-year life. If neither alternative has a salvage value, what is the (a) first cost of alternative A and (b) first cost of alternative B? Year 0 1 2 3 4 5 6 Incremental Cash Flow (BA), $ -20,000 5,000 5,000 12,000 5,000 5,000 5,000

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6.26 The tabulation of the incremental cash flows be-
tween alternatives A and B is shown. Alternative
A has a 3-year life and alternative B a 6-year life.
If neither alternative has a salvage value, what is
the (a) first cost of alternative A and (b) first cost
of alternative B?
Year
0
1
2
3
4
5
6
Incremental Cash Flow
(BA), $
-20,000
5,000
5,000
12,000
5,000
5,000
5,000
Transcribed Image Text:6.26 The tabulation of the incremental cash flows be- tween alternatives A and B is shown. Alternative A has a 3-year life and alternative B a 6-year life. If neither alternative has a salvage value, what is the (a) first cost of alternative A and (b) first cost of alternative B? Year 0 1 2 3 4 5 6 Incremental Cash Flow (BA), $ -20,000 5,000 5,000 12,000 5,000 5,000 5,000
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