Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 10% per year and a study period of 10 years. Alternative First Cost $-40,000 $-25,000 AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years $-9,000 $-10,000 $-200 $-600 $11,000 $200 10 5 The present worth of alternative C is $ -33518.05 and that of alternative D is $-102608.3 Alternative D voffers the lower present worth.

Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 10% per year and a study period of 10 years. Alternative First Cost $-40,000 $-25,000 AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years $-9,000 $-10,000 $-200 $-600 $11,000 $200 10 5 The present worth of alternative C is $ -33518.05 and that of alternative D is $-102608.3 Alternative D voffers the lower present worth.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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