Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use i=9% per year and f= 2.6% per year. Alternative First cost, $ AOC, $ per year Salvage value, $ Life, years -17,500,000 -12,000,000 -10,000 82,000 10 -25,000 105,000 00 The capitalized cost for alternative X is $ -17711255.7039| The capitalized cost for alternative Y is $ Select alternative
Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use i=9% per year and f= 2.6% per year. Alternative First cost, $ AOC, $ per year Salvage value, $ Life, years -17,500,000 -12,000,000 -10,000 82,000 10 -25,000 105,000 00 The capitalized cost for alternative X is $ -17711255.7039| The capitalized cost for alternative Y is $ Select alternative
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use i=9% per year and f=
2.6% per year.
Alternative
X
Y
-17,500,000
-25,000
105,000
-12,000,000
-10,000
82,000
10
First cost, $
AOC, $ per year
Salvage value, $
Life, years
00
The capitalized cost for alternative X is $-17711255.7039 O
The capitalized cost for alternative Y is $
Select alternative](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf48e98e-0833-4f6d-bf6a-1114ef129d0a%2Fbb5a42bf-0e72-474b-a025-efba41694568%2F4141ss_processed.png&w=3840&q=75)
Transcribed Image Text:Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use i=9% per year and f=
2.6% per year.
Alternative
X
Y
-17,500,000
-25,000
105,000
-12,000,000
-10,000
82,000
10
First cost, $
AOC, $ per year
Salvage value, $
Life, years
00
The capitalized cost for alternative X is $-17711255.7039 O
The capitalized cost for alternative Y is $
Select alternative
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