Alternative A: $69,000 2 3 10 End of Year $390,000 Alternative B: $167,000 ! ! ! ! 2 3 9. 10 End of Year $920,000 Alternative C: $133,500 1 2 3 9 10 End of Year $660,000
Alternative A: $69,000 2 3 10 End of Year $390,000 Alternative B: $167,000 ! ! ! ! 2 3 9. 10 End of Year $920,000 Alternative C: $133,500 1 2 3 9 10 End of Year $660,000
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 14CE
Related questions
Question
Best Flight, Inc., is considering three mutually exclusive alternatives for
implementing an automated passenger check-in counter at its hub airport.
Each alternative meets the same service requirements, but differences in capital investment amounts and benefits (cost savings) exist among them. The study period is 10 years, and the useful lives of all three alternatives are also 10 years. Market values of all alternatives are assumed to be zero at the end of their useful lives. If the airline’s MARR is 10% per year, whichalternative should be selected in view of the cash-flow diagrams shown herewith attached.
Transcribed Image Text:Alternative A:
$69,000
2
3
10
End of Year
$390,000
Alternative B:
$167,000
! !
! !
2
3
9.
10
End of Year
$920,000
Alternative C:
$133,500
1
2
3
9
10
End of Year
$660,000
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