Compare three alternatives on the basis of their capitalized costs at /= 13.00% per year and select the best alternative. (Include a minus sign if necessary.) Alternative E F First Cost $-75000 $-320000 AOC, per Year $-40000 $-12000 Salvage Value $13000 $63000 2 4 Life, Years The capitalized cost of alternative E is $ 372511.40 The best alternative is E G $-1025000 $-6000 $400000 00 , alternative F is $ 373668.61, and alternative G is $ -1071153.85

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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Compare three alternatives on the basis of their capitalized costs at /= 13.00% per year and select the best alternative. (Include a
minus sign if necessary.)
Alternative
E
F
First Cost
$-75000
$-320000
AOC, per Year
$-40000
$-12000
Salvage Value
$13000
$63000
2
4
Life, Years
The capitalized cost of alternative E is $ 372511.40
The best alternative is
E
G
$-1025000
$-6000
$400000
00
,
alternative F is $ 373668.61, and alternative G is $ -1071153.85
Transcribed Image Text:Compare three alternatives on the basis of their capitalized costs at /= 13.00% per year and select the best alternative. (Include a minus sign if necessary.) Alternative E F First Cost $-75000 $-320000 AOC, per Year $-40000 $-12000 Salvage Value $13000 $63000 2 4 Life, Years The capitalized cost of alternative E is $ 372511.40 The best alternative is E G $-1025000 $-6000 $400000 00 , alternative F is $ 373668.61, and alternative G is $ -1071153.85
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