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Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 14% 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 C $-48,000 $-9,000 $-1,400 $8,000 10 The present worth of alternative C is $-117974.14 Alternative D offers the lower present worth. D $-34,000 $-9,000 $-1,500 $1,400 5 and that of alternative D is $ -73129.34

Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 14% 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 C $-48,000 $-9,000 $-1,400 $8,000 10 The present worth of alternative C is $-117974.14 Alternative D offers the lower present worth. D $-34,000 $-9,000 $-1,500 $1,400 5 and that of alternative D is $ -73129.34

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 14% 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 $-48,000 $-9,000 $-1,400 $8,000 10 The present worth of alternative C is $ -117974.14 Alternative D offers the lower present worth. D $-34,000 $-9,000 $-1,500 $1,400 5 and that of alternative D is $ -73129.34 x
Transcribed Image Text:Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 14% 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 $-48,000 $-9,000 $-1,400 $8,000 10 The present worth of alternative C is $ -117974.14 Alternative D offers the lower present worth. D $-34,000 $-9,000 $-1,500 $1,400 5 and that of alternative D is $ -73129.34 x
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