apital Investment $5,000 $6,000 15 Useful life 20 $800 in year 10 and decreasing by a constant amount of $50 per year nnual Expenses $200 thereafter Salvage Value $1,000 What is the annual worth (AW) of alternative X? Show all the steps of lculation. (4 marks) -) What is the annual worth (AW) of alternative Y? Show all the steps of alculation. (5 marks) =) Based on your answers in part (a) and (b), explain which alternative should e selected. (2 marks)

apital Investment $5,000 $6,000 15 Useful life 20 $800 in year 10 and decreasing by a constant amount of $50 per year nnual Expenses $200 thereafter Salvage Value $1,000 What is the annual worth (AW) of alternative X? Show all the steps of lculation. (4 marks) -) What is the annual worth (AW) of alternative Y? Show all the steps of alculation. (5 marks) =) Based on your answers in part (a) and (b), explain which alternative should e selected. (2 marks)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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