Compare two alternatives, A and B, on the basis of a present worth evaluation using i = 14.00% per year and a study period of 8 years. (Include a minus sign if necessary.) Alternative First Cost Annual Operating Cost Overhaul in Year 4 Salvage Value Life A $-17000 $-5000 $0 $2800 4 years B $-41000 $-9000 $-3550 $8200 8 years The present worth of alternative A is $ Alternative (Click to select) ▾ is selected. (Click to select) B A and that of alternative B is $

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 6E
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Compare two alternatives, A and B, on the basis of a present worth evaluation using i = 14.00% per year and a study period of 8
years. (Include a minus sign if necessary.)
Alternative
First Cost
Annual Operating Cost
Overhaul in Year 4
Salvage Value
Life
A
$-17000
$-5000
$0
$2800
4 years
B
$-41000
$-9000
$-3550
$8200
8 years
The present worth of alternative A is $
Alternative (Click to select) ▾ is selected.
(Click to select)
B
A
and that of alternative B is $
Transcribed Image Text:Compare two alternatives, A and B, on the basis of a present worth evaluation using i = 14.00% per year and a study period of 8 years. (Include a minus sign if necessary.) Alternative First Cost Annual Operating Cost Overhaul in Year 4 Salvage Value Life A $-17000 $-5000 $0 $2800 4 years B $-41000 $-9000 $-3550 $8200 8 years The present worth of alternative A is $ Alternative (Click to select) ▾ is selected. (Click to select) B A and that of alternative B is $
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