Complete the following analysis of cost alternatives and select the preferred alternative. The study period is 10 years and the MARR=12% per year. "Do Nothing" is not an option. A B $15,000 $16,000 Capital investment Annual costs 240 310 Market value at EOY 10 1,000 1,250 FW (12%) -$49,799 -$53,884 ???-$55,660 Click the icon to view the interest and annuity table for discrete compounding when i=12% per year. C $13,500 450 1,800 D $18,000 100 2,000
Complete the following analysis of cost alternatives and select the preferred alternative. The study period is 10 years and the MARR=12% per year. "Do Nothing" is not an option. A B $15,000 $16,000 Capital investment Annual costs 240 310 Market value at EOY 10 1,000 1,250 FW (12%) -$49,799 -$53,884 ???-$55,660 Click the icon to view the interest and annuity table for discrete compounding when i=12% per year. C $13,500 450 1,800 D $18,000 100 2,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Complete the following analysis of cost alternatives and select the preferred alternative. The study period is 10 years and the MARR = 12%
per year. "Do Nothing" is not an option.
A
$15,000
240
1,000
-$49,799 -$53,884
The FW of the alternative C is $ (Round to the nearest dollar.)
Select the preferred alternative. Choose the correct answer below.
O A. Alternative D
OB. Alternative B
OC. Alternative C
O D. Alternative A
B
$16,000
310
1,250
C
$13,500
450
1,800
Capital investment
Annual costs
Market value at EOY 10
FW (12%)
??? -$55,660
Click the icon to view the interest and annuity table for discrete compounding when /= 12% per year.
D
$18,000
100
2,000
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