In comparing alternatives A and B by the present worth method, the value of n that must be sed in10,000( P/A, %i , n) for alternative A is:Alternative(A)Alternative (B)-200,00020,000First Cost-100,000M&O cost/year10,000Salvage value20,00030,000Life4.3OA 8оВ. 4ос 12O D. 16

In calculating the present value of annual cash flow we use the present value factor annuity. The…

Answered: Alternative (B) Alternative(A) -100,000…

Business

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Alternative (B) Alternative(A) -100,000 st Cost -200,000 10,000 20,000 costlyear 20,000 age value 30,000 Life 4. 3

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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Question

In comparing alternatives A and B by the present worth method, the value of n that must be sed in
10,000( P/A, %i , n) for alternative A is:
Alternative(A)
Alternative (B)
-200,000
20,000
First Cost
-100,000
M&O cost/year
10,000
Salvage value
20,000
30,000
Life
4.
3
OA 8
оВ. 4
ос 12
O D. 16

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