Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 15% per year and a study period of 10 years. Alternative First Cost AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years с $-50,000 $-8,000 $-1,500 $14,000 10 D $-21,000 $-9,000 $-200 $1,500 5 The present worth of alternative C is $ -112158.8 and that of alternative D is $ -78889.C Alternative D offers the lower present worth.
Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 15% per year and a study period of 10 years. Alternative First Cost AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years с $-50,000 $-8,000 $-1,500 $14,000 10 D $-21,000 $-9,000 $-200 $1,500 5 The present worth of alternative C is $ -112158.8 and that of alternative D is $ -78889.C Alternative D offers the lower present worth.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 15% per year and a study period of
10 years.
Alternative
Alternative D
You received partial credit in the previous attempt.
с
$-50,000
$-8,000
$-1,500
$14,000
10
D
$-21,000
$-9,000
$-200
$1,500
5
First Cost
AOC, per Year
Annual Increase in Operating
Cost, per Year
Salvage Value
Life, Years
The present worth of alternative C is $-112158.8 and that of alternative D is $-78889.C
offers the lower present worth.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd3f5c0e-287b-4c90-92ef-419f15feb161%2F5e248006-1dd9-485e-a13b-b6de7f073bcb%2Fyrq0c2s_processed.png&w=3840&q=75)
Transcribed Image Text:Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 15% per year and a study period of
10 years.
Alternative
Alternative D
You received partial credit in the previous attempt.
с
$-50,000
$-8,000
$-1,500
$14,000
10
D
$-21,000
$-9,000
$-200
$1,500
5
First Cost
AOC, per Year
Annual Increase in Operating
Cost, per Year
Salvage Value
Life, Years
The present worth of alternative C is $-112158.8 and that of alternative D is $-78889.C
offers the lower present worth.
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