Multiple Choiceоо$23,160.$40,560.$58,950.$72,432. Following cash flows for alternatives X and Y at an interest rate of 10% per year.Machine X Machine Y-146,000-220,000Initial cost, $AOC, $/yearAnnual revenue, $/yearSalvage value, $Life, years-15,00080,00010,0003-10,00075,00025,0006In comparing the alternatives on a present worth basis, the PW of Machine X is closest to

To calculate the present worth (PW) of each machine, we need to find the net present value (NPV) of…

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 -15,000 80,000 10,000 3 -10,000 75,000 25,000 6 In comparing the alternatives on a present worth basis, the PW of Machine X is closest to

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 -15,000 80,000 10,000 3 -10,000 75,000 25,000 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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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

Multiple Choice
о
о
$23,160.
$40,560.
$58,950.
$72,432.

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

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