Required information The tabulation of the incremental cash flows between alternatives A and B is shown. Alternative A has a 3-year life and alternative B a 6-year life. Year Ο 1 2 3 4 5 Incremental Cash Flows (BA), $ -22,500 5,000 5,000 11,000 5,000 5,000 6 5,000 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
Required information The tabulation of the incremental cash flows between alternatives A and B is shown. Alternative A has a 3-year life and alternative B a 6-year life. Year Ο 1 2 3 4 5 Incremental Cash Flows (BA), $ -22,500 5,000 5,000 11,000 5,000 5,000 6 5,000 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:Required information
The tabulation of the incremental cash flows between alternatives A and B is shown. Alternative A has a 3-year life
and alternative B a 6-year life.
Year
Incremental Cash Flows (BA), $
-22,500
5,000
5,000
11,000
5,000
5,000
5,000
NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part.
0123456
If neither alternative has a salvage value, what is the first cost of alternative A?
The first cost of alternative A is $-
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