Given the following two mutually exclusive alternatives and using repeatability assumption, the correct equation for computing the CW of alternative B is. MARR-15%/year. Capital Investment, $ Market value, $ Annual Expenses, $ Useful life (years) Alternative A -12,000 AVSEQ0-1 40.0004A 0 -2.200 10 O CW(15 %)-(-40,000-100-(P/A, 15%, 25)+10000(P/F, 15%, 25))*0.15 O CW(15%) - (-40,000(A/P, 15%, 25)-1000+10,000(A/F. 15%, 25 ) ) /0.15 Alternative B -40.000 10,000 -1,000 25
Given the following two mutually exclusive alternatives and using repeatability assumption, the correct equation for computing the CW of alternative B is. MARR-15%/year. Capital Investment, $ Market value, $ Annual Expenses, $ Useful life (years) Alternative A -12,000 AVSEQ0-1 40.0004A 0 -2.200 10 O CW(15 %)-(-40,000-100-(P/A, 15%, 25)+10000(P/F, 15%, 25))*0.15 O CW(15%) - (-40,000(A/P, 15%, 25)-1000+10,000(A/F. 15%, 25 ) ) /0.15 Alternative B -40.000 10,000 -1,000 25
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Given the following two mutually exclusive alternatives and using repeatability assumption, the
correct equation for computing the CW of alternative B is. MARR-15% / year.
Capital Investment, $
Market value, $
Annual Expenses, $
Useful life (years)
Alternative A
-12.000
0
-2,200
10
O CW(15%)-(-40,000-100-(P/A, 15%, 25)+10000(P/F, 15 %. 25))*0.15
O CW(15 %)-(-40,000(A/P. 15%, 25)-1000+10,000(A/F. 15%, 25))/0.15
OCW(15%) - (-40,000(A/P. 15%, 25)-1000+10,000(A/F, 15%, 25))*0.15
OCW(15%)-(-40,000-100-(P/A, 15%, 25 ) +10000 (P/F, 15%, 25))"0.15
Alternative B
-40.000
10,000
1,000
25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a56a26c-35a9-40df-80ea-0d3df3fab710%2Fc7163789-cb9e-4ea9-a739-afd79695276b%2Fk9d731r_processed.png&w=3840&q=75)
Transcribed Image Text:Given the following two mutually exclusive alternatives and using repeatability assumption, the
correct equation for computing the CW of alternative B is. MARR-15% / year.
Capital Investment, $
Market value, $
Annual Expenses, $
Useful life (years)
Alternative A
-12.000
0
-2,200
10
O CW(15%)-(-40,000-100-(P/A, 15%, 25)+10000(P/F, 15 %. 25))*0.15
O CW(15 %)-(-40,000(A/P. 15%, 25)-1000+10,000(A/F. 15%, 25))/0.15
OCW(15%) - (-40,000(A/P. 15%, 25)-1000+10,000(A/F, 15%, 25))*0.15
OCW(15%)-(-40,000-100-(P/A, 15%, 25 ) +10000 (P/F, 15%, 25))"0.15
Alternative B
-40.000
10,000
1,000
25
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