A pump is required for 10 years at a remote location. The pump can be driven by an electric motor if a power line is extended to the site, otherwise a gasoline engine will be used. Based on the following data and a 7% interest rate, determine Gasoline Eclectie First Cost $3400 S6000 Annual operating cost $1200 S750 Annual maintenance $300 Salvage value $300 S600 Life, in years 10 1-The present worth of the electric alternative is $ 2-The present worth of the gasoline alternative is $ 3-The recommended alternative is
A pump is required for 10 years at a remote location. The pump can be driven by an electric motor if a power line is extended to the site, otherwise a gasoline engine will be used. Based on the following data and a 7% interest rate, determine Gasoline Eclectie First Cost $3400 S6000 Annual operating cost $1200 S750 Annual maintenance $300 Salvage value $300 S600 Life, in years 10 1-The present worth of the electric alternative is $ 2-The present worth of the gasoline alternative is $ 3-The recommended alternative is
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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