Given the data in the table below, calculate the PW of A and B. Choose the better alternative- using present worth analysis if MARR is 8%. Data Initial Cost Annual Benefits Annual Expenses Salvage Value O A = $1,510 B = $2,043 Choose B OA= $1,729 B = $3,208 Choose A Useful Life in Years 6 OA= $1,729 B = $3,208 Choose B OA= $1,510 B = $2,043 Alternative Choose A A B $10,000 $9,000 $5,200 $4,700 $3,000 $2,000 $1,200 $1,300 4

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Given the data in the table below, calculate the PW of A and B. Choose the better alternative-
using present worth analysis if MARR is 8%.
Data
Initial Cost
Annual Benefits
Salvage Value
O A = $1,510
B = $2,043
Annual Expenses $3,000 $2,000
Choose B
OA= $1,729
B = $3,208
Choose A
Useful Life in Years 6
OA= $1,729
B = $3,208
Choose B
Alternative
OA= $1,510
B = $2,043
A B
Choose A
$10,000 $9,000
$5,200 $4,700
$1,200 $1,300
4
Transcribed Image Text:Given the data in the table below, calculate the PW of A and B. Choose the better alternative- using present worth analysis if MARR is 8%. Data Initial Cost Annual Benefits Salvage Value O A = $1,510 B = $2,043 Annual Expenses $3,000 $2,000 Choose B OA= $1,729 B = $3,208 Choose A Useful Life in Years 6 OA= $1,729 B = $3,208 Choose B Alternative OA= $1,510 B = $2,043 A B Choose A $10,000 $9,000 $5,200 $4,700 $1,200 $1,300 4
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