A chemical company is considering selecting one of the alternative projects at MARR of 10% per year and 8 years Study Period. It Declined Balanced (DB) Depreciation 5% rate. Initial Cost, BD Uniform Annual Benefit, Project A 10,000 4,500 Project B 15,000 5,500 5,000 6 BD Salvage Value, BD 5,000 Useful Life, Years 10 Select the following: present worth (PW) for Project A, PW Project B, and the decision.
A chemical company is considering selecting one of the alternative projects at MARR of 10% per year and 8 years Study Period. It Declined Balanced (DB) Depreciation 5% rate. Initial Cost, BD Uniform Annual Benefit, Project A 10,000 4,500 Project B 15,000 5,500 5,000 6 BD Salvage Value, BD 5,000 Useful Life, Years 10 Select the following: present worth (PW) for Project A, PW Project B, and the decision.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A chemical company is considering selecting one of the alternative projects at MARR of 10% per year and 8 years Study Period. It uses
Declined Balanced (DB) Depreciation 5% rate.
Project A
10,000
4,500
Project B
15,000
5,500
Initial Cost, BD
Uniform Annual Benefit,
BD
Salvage Value, BD
5,000
Useful Life, Years
10
Select the following: present worth (PW) for Project A, PW Project B, and the decision.
5,000
6
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