5-73 Given the following data, use present worth analysisto find the best alternative, A, B, or C.ABInitial cost$10,0006,00015,000 $12,000Annual benefit10,0005,000Salvage valueUseful life1,000-2,0003,0002 years3 years4 yearsUse an analysis period of 12 years and 15% interest.

The question pertains to finding the present value of the assets in by discounting the expected…

Answered: A B Initial cost $10,000 15,000 $12,000…

A B Initial cost $10,000 15,000 $12,000 Annual benefit Salvage value Useful life 6,000 10,000 -2,000 5,000 1,000 3,000 2 years 3 years 4 years Jse an analysis period of 12 years and 15% interest.

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

5-73 Given the following data, use present worth analysis
to find the best alternative, A, B, or C.
A
B
Initial cost
$10,000
6,000
15,000 $12,000
Annual benefit
10,000
5,000
Salvage value
Useful life
1,000
-2,000
3,000
2 years
3 years
4 years
Use an analysis period of 12 years and 15% interest.

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