An engineering alternative has a first cost of $12700, and is expected to bave net annual receipts of $1650 for the next 8 years. Assuming no salvage value at the end of the alternative's life, the amount of AW(0%) is: 1. C$500.00 2. C-$500.00 3. C-$62.50 4. C $62.50 5. C NONE.

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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An engineering alternative has a first cost of $12700, and is expected to have net annuai
receipts of $1650 for the next 8 years. Assuming no salvage value at the end of the
alternative's life, the amount of AW(0%) is:
1. c$500.00
2. C-$500.00
3. C-$62.50
4. C $62.50
5. C NONE.
Transcribed Image Text:An engineering alternative has a first cost of $12700, and is expected to have net annuai receipts of $1650 for the next 8 years. Assuming no salvage value at the end of the alternative's life, the amount of AW(0%) is: 1. c$500.00 2. C-$500.00 3. C-$62.50 4. C $62.50 5. C NONE.
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