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
Related questions
Question
100%
Q.47
Using the repeatability assumption, what is the PW of Alternative Y?
O. $22,436
O. $58,192
O. $7,740
O. $12,385
Q. 48
Using coterminated assumption, what is the FW of Alternative X?
O. $12,385
O. $7.740
O. $22,436
O. $58,192
Q. 49
Using the coterminated assumption, what is the FW of Alternative Y?
O. $22,436
O. $58,192
O. $12,385
O. $7,740
Q. 50
Which alternative is selected?
O. Alternatíve X
O. Alternative Y
O. neither X nor Y is economically attractive
O. X and Y are equally attractive
Transcribed Image Text:46-50: Consider the mutually exclusive alternatives given in the table below. The
MARR is 10% per year.
Alternative X Alternative Y
Capital Investment (thousands)
$500,000
$250,000
Uniform Annual Savings (thousands)
$131,900
$40,690
Useful life, years
10
Using the repeatability assumption, what is the PW of Alternative X?
O $12,385
$58,192
$22,436
$7,740
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