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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

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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Can someone please help me to solve the following question in excel with a file laid out like this for each alternative and follow all directions. All part of the same question. please and thank you!!!!
Year First Cost Annual Benefit 0 2 3 5 Salvage Pwa Cash flow, $ Year 0 1 2 3 4 5 First Cost Annual Benefit Salvage PWb Cash flow, $ 0 P Year Q First Cost R S Annual Benefit Salvage Cash flow, $
Transcribed Image Text:Year First Cost Annual Benefit 0 2 3 5 Salvage Pwa Cash flow, $ Year 0 1 2 3 4 5 First Cost Annual Benefit Salvage PWb Cash flow, $ 0 P Year Q First Cost R S Annual Benefit Salvage Cash flow, $
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
Transcribed Image Text: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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