Based on the following cash flows and an interest rate of 10% per year Alternative X First cost, $ Annual cost, $/year Salvage value, $ Life, years -300,000 -65,000 25,000 5 1) What is the Annual Worth of Alternative X? $ 2) What is the Annual Worth of Alternative Y? $ -850,000 -10,000 160,000 00 00 3) What is the annual worth of the first cost and salvage value for project X? $

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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question 10
Based on the following cash flows and an interest rate of 10% per year
Alternative
X
-300,000
-65,000
25,000
5
First cost, $
Annual cost, $/year
Salvage value, $
Life, years
-850,000
-10,000
160,000
%
00
1) What is the Annual Worth of Alternative X? $
2) What is the Annual Worth of Alternative Y? $
3) What is the annual worth of the first cost and salvage value for project X? $
4) What is the annual worth of the first cost and salvage value for project Y? $
5) What is the interest rate?
6) What is the project life for Alternative X?
7) What is the project life for Alternative Y? (Click to select)✓ years
years
Transcribed Image Text:question 10 Based on the following cash flows and an interest rate of 10% per year Alternative X -300,000 -65,000 25,000 5 First cost, $ Annual cost, $/year Salvage value, $ Life, years -850,000 -10,000 160,000 % 00 1) What is the Annual Worth of Alternative X? $ 2) What is the Annual Worth of Alternative Y? $ 3) What is the annual worth of the first cost and salvage value for project X? $ 4) What is the annual worth of the first cost and salvage value for project Y? $ 5) What is the interest rate? 6) What is the project life for Alternative X? 7) What is the project life for Alternative Y? (Click to select)✓ years years
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