Problem 05.023 Alternative Comparison - Different Lives Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 10% per year and a study period of 10 years. Alternative First Cost AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years The present worth of alternative C is $ C $-40,000 $-5,000 $-1,000 $15,000 10 D $-30,000 $-7,000 $-1,100 $1,000 5 and that of alternative D is $ Alternative C offers the lower present worth.

Problem 05.023 Alternative Comparison - Different Lives Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 10% per year and a study period of 10 years. Alternative First Cost AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years The present worth of alternative C is $ C $-40,000 $-5,000 $-1,000 $15,000 10 D $-30,000 $-7,000 $-1,100 $1,000 5 and that of alternative D is $ Alternative C offers the lower present worth.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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