If the interest rate is i- 10%, calculate the following: 1. Do the Present Worth Analysis (PW) for 11 years and select the alternative. 2. Do the Equvilent Uniform Annual Worth Analysis (EUAW) for 11 years and select the alternative. A B $ 60000 $ 7500 $ 2500 $ 20000 $ 85000 $ 9000 $ 3000 $ 25000 Initial cost Annual benefits Annual operation and maintenance cost Salvage value Useful life 7. 13 Value at the end of 11 years life $ 25000 $ 40000
If the interest rate is i- 10%, calculate the following: 1. Do the Present Worth Analysis (PW) for 11 years and select the alternative. 2. Do the Equvilent Uniform Annual Worth Analysis (EUAW) for 11 years and select the alternative. A B $ 60000 $ 7500 $ 2500 $ 20000 $ 85000 $ 9000 $ 3000 $ 25000 Initial cost Annual benefits Annual operation and maintenance cost Salvage value Useful life 7. 13 Value at the end of 11 years life $ 25000 $ 40000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 1:
If the interest rate is i= 10%, calculate the following:
1. Do the Present Worth Analysis (PW) for 11 years and select the alternative.
2. Do the Equvilent Uniform Annual Worth Analysis (EUAW) for 11 years and select the alternative.
B
$ 60000
$ 7500
$ 2500
$ 20000
$ 85000
$ 9000
$ 3000
$ 25000
Initial cost
Annual benefits
Annual operation and maintenance cost
Salvage value
Useful life
7
13
Value at the end of 11 years life
$ 25000
$ 40000
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