Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use i=13% per year and f= 4.7% per year. Alternative First cost, $ AOC, $ per year Salvage value, $ Life, years X -16,500,000 -25,000 105,000 Select alternative X 00 Y -15,000,000 -10,000 82,000 10 The capitalized cost for alternative X is $ -16692307.69 The capitalized cost for alternative Y is $

Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use i=13% per year and f= 4.7% per year. Alternative First cost, $ AOC, $ per year Salvage value, $ Life, years X -16,500,000 -25,000 105,000 Select alternative X 00 Y -15,000,000 -10,000 82,000 10 The capitalized cost for alternative X is $ -16692307.69 The capitalized cost for alternative Y is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use /=13% per year and f=
4.7% per year.
Alternative
First cost, $
AOC, $ per year
Salvage value, $
Life, years
X
-16,500,000
-25,000
105,000
00
The capitalized cost for alternative X is $ -1669230769
The capitalized cost for alternative Y is $
Select alternative X
Y
-15,000,000
-10,000
82,000
10

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