Based on the following cash flows and an interest rate of 10% per year Alternative First cost, $ Annual cost, $/year Salvage value, $ Life, years Y -200,000 -800,000 -60,000 -10,000 20,000 150,000 5 ∞ The annual worth of Alternative Y is closest to

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Chapter1: Making Economics Decisions
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Based on the following cash flows and an interest rate of 10% per year
Alternative
First cost, $
Annual cost, $/year
Salvage value, $
Life, years
Y
-200,000
-800,000
-60,000
-10,000
20,000
150,000
5
∞
The annual worth of Alternative Y is closest to
Transcribed Image Text:Based on the following cash flows and an interest rate of 10% per year Alternative First cost, $ Annual cost, $/year Salvage value, $ Life, years Y -200,000 -800,000 -60,000 -10,000 20,000 150,000 5 ∞ The annual worth of Alternative Y is closest to
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