Following cash flows for alternatives X and Y at an interest rate of 10% per year. Initial cost, $ AOC, $/year Annual revenue, $/year Salvage value, $ Life, years Machine X Machine Y -146,000 -220,000 Multiple Choice -15,000 -10,000 80,000 75,000 10,000 25,000 3 6 In comparing the alternatives on a present worth basis, the PW of Machine X is closest to

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Question
Following cash flows for alternatives X and Y at an interest rate of 10% per year.
Initial cost, $
AOC, $/year
Annual revenue, $/year
Salvage value, $
Life, years
Multiple Choice
In comparing the alternatives on a present worth basis, the PW of Machine X is closest to
O
O
$23.160.
$40,560
$58,950.
Machine X Machine Y
-146,000
-220,000
$72,432
-15,000 -10,000
80,000
75,000
10,000
25,000
3
6
Transcribed Image Text:Following cash flows for alternatives X and Y at an interest rate of 10% per year. Initial cost, $ AOC, $/year Annual revenue, $/year Salvage value, $ Life, years Multiple Choice In comparing the alternatives on a present worth basis, the PW of Machine X is closest to O O $23.160. $40,560 $58,950. Machine X Machine Y -146,000 -220,000 $72,432 -15,000 -10,000 80,000 75,000 10,000 25,000 3 6
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