Can someone help me to solve this problem using the present worth analysis? Using neatly written hand calculations. PLEASE AND THANK YOU!!!! A company is investigating three alternatives as follows: HoAlternative AAlternative BAlternative CInitial cost$60,000$40,000$50,000Annual Benefits$32,000$16,000$17,000Salvage Value$10,000$9,000$9,000Useful life, years236a) Draw Cash flow diagram for each alternative?b) Which machine is preferable on the basis of PRESENT WORTH ANALYSIS if i=4% per year?(Assume the selected alternative will be repeated each life cycle, in exactly the same manner

Given cash flow information Alternate A Initial cost=$60000 Annual benefit=$32000 Salvage…

A company is investigating three alternatives as follows: Ho Alternative A Initial cost $60,000 Annual Benefits $32,000 Salvage Value $10,000 Useful life, years 2 Alternative B $40,000 $16,000 $9,000 3 Alternative C $50,000 $17,000 $9,000 6

A company is investigating three alternatives as follows: Ho Alternative A Initial cost $60,000 Annual Benefits $32,000 Salvage Value $10,000 Useful life, years 2 Alternative B $40,000 $16,000 $9,000 3 Alternative C $50,000 $17,000 $9,000 6

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

Can someone help me to solve this problem using the present worth analysis? Using neatly written hand calculations. PLEASE AND THANK YOU!!!!

A company is investigating three alternatives as follows: Ho
Alternative A
Alternative B
Alternative C
Initial cost
$60,000
$40,000
$50,000
Annual Benefits
$32,000
$16,000
$17,000
Salvage Value
$10,000
$9,000
$9,000
Useful life, years
2
3
6
a) Draw Cash flow diagram for each alternative?
b) Which machine is preferable on the basis of PRESENT WORTH ANALYSIS if i=4% per year?
(Assume the selected alternative will be repeated each life cycle, in exactly the same manner

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