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Determine the annual worth X_--Y_-----and X__---- if the interest rate 10% per year compounded annually and alternatives X and Y can be repeated an infinite number of times. Which alternative is preferred? alternative X YZ First cost S -200,000 -450,000 -800,0 Annual Cost $ -60,000 -30,0000 -10,000 Salvage Value S 80,000 108,000 5,000

Determine the annual worth X_--Y_-----and X__---- if the interest rate 10% per year compounded annually and alternatives X and Y can be repeated an infinite number of times. Which alternative is preferred? alternative X YZ First cost S -200,000 -450,000 -800,0 Annual Cost $ -60,000 -30,0000 -10,000 Salvage Value S 80,000 108,000 5,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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-_ if the Determine the annual worth X Y and X__ interest rate 10% per year compounded annually and alternatives X and Y can be repeated an infinite number of times. Which alternative is preferred? alternative X Y Z First cost S -200,000 -450,000 -800,0 Annual Cost $ -60,000 -30,0000 -10,000 Salvage Value S 80,000 108,000 5,000 Life, years 5 10 0
Transcribed Image Text:-_ if the Determine the annual worth X Y and X__ interest rate 10% per year compounded annually and alternatives X and Y can be repeated an infinite number of times. Which alternative is preferred? alternative X Y Z First cost S -200,000 -450,000 -800,0 Annual Cost $ -60,000 -30,0000 -10,000 Salvage Value S 80,000 108,000 5,000 Life, years 5 10 0
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