For the defender, it is given that the annual equivalent costs for one year is $2,500, for two years is $2,300, for three years is $2,600, for four years is $1,900 and for five years is $2,200. For the challenger, it is given that the annual equivalent costs for one year is 6,000, for two years is $4,000, for three years is $4,100, for four years is $5,000 and for five years is $5,200. Using the finite planning horizon of 6 years, apply the present worth analysis to determine (j0,1), (j,2),(j,3). Assume i=15%.

For the defender, it is given that the annual equivalent costs for one year is $2,500, for two years is $2,300, for three years is $2,600, for four years is $1,900 and for five years is $2,200. For the challenger, it is given that the annual equivalent costs for one year is 6,000, for two years is $4,000, for three years is $4,100, for four years is $5,000 and for five years is $5,200. Using the finite planning horizon of 6 years, apply the present worth analysis to determine (j0,1), (j,2),(j,3). Assume i=15%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

For the defender, it is given that
the annual equivalent costs for one year is $2,500, for two years is $2,300, for three
years is $2,600, for four years is $1,900 and for five years is $2,200.
For the challenger, it is given that
the annual equivalent costs for one year is 6,000, for two years is $4,000, for three
years is $4,100, for four years is $5,000 and for five years is $5,200.
Using the finite planning horizon of 6 years, apply the present worth analysis to
determine (j0,1), (j,2),(j,3).
Assume i=15%.
O a) Between $13,300 and $14,500
O b) Between $17,800 and $18,500
c) None of the answers are correct
d) Between $24,800 and $25,100
e) Between $14,500 and $15,500
f) Between $15,800 and $16,500

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