Compare the alternatives shown on the basis of their capitalized costs using a MARR of 10% per year.   Alternative M N First cost, $ −195,000 −750,000 Annual operating cost, $ per year −70,000 −11,000 Salvage value, $ 8,000 1,000,000 Life, years 5 ∞ The capitalized cost for alternative M is $−  , and the capitalized cost for alternative N is $−  . The best alternative selected on the basis of their capitalized costs is alternative

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Compare the alternatives shown on the basis of their capitalized costs using a MARR of 10% per year.

 

Alternative

M

N

First cost, $

−195,000

−750,000

Annual operating cost, $ per year

−70,000

−11,000

Salvage value, $

8,000

1,000,000

Life, years

5

The capitalized cost for alternative M is $−  , and the capitalized cost for alternative N is $−  .

The best alternative selected on the basis of their capitalized costs is alternative       

 

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