Present Worth Method. Show your complete solution and box your answers. A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 mil- lion units). Which one should be selected on the basis of a present worth analysis at 10% per year? In-house Contract First cost, S -30 0 <-5 -2 Annual cost, $ per year Annual income, $ per year 14 2 Salvage value, $ Life, years 5 3.1 5

Present Worth Method. Show your complete solution and box your answers. A company that manufactures magnetic membrane switches is investigating two production options that have the estimated cash flows shown ($1 mil- lion units). Which one should be selected on the basis of a present worth analysis at 10% per year? In-house Contract First cost, S -30 0 <-5 -2 Annual cost, $ per year Annual income, $ per year 14 2 Salvage value, $ Life, years 5 3.1 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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