The alternatives shown are to be compared on the basis of their present worth values. At an interest rate of 8% per year, the values of n that you should use in the uniform series factors to make a correct comparison by the present worth method are: Alternative (B) Alternative(A) -10,000 -25,000 3,000 First Cost M&O cost/year 10,000 Salvage value 6,000 -2,000 Life 4 O A n =4 years for A and n =4 years for B OB. None of the above OCn=4 years for A and n=3 years for B OD. n = 12 years for A and n = 12 years for B

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The alternatives shown are to be compared on the basis of their present worth values. At an interest
rate of 8% per year, the values of n that you should use in the uniform series factors to make a
correct comparison by the present worth method are:
Alternative(A)
Alternative (B)
-25,000
-10,000
10,000
First Cost
M&O cost/year
3,000
Salvage value
6,000
-2,000
Life
4
O A n 4 years for A and n =4 years for B
OB. None of the above
O C. n = 4 years for A and n =3 years for B
O D. n = 12 years for A and n = 12 years for B
Transcribed Image Text:The alternatives shown are to be compared on the basis of their present worth values. At an interest rate of 8% per year, the values of n that you should use in the uniform series factors to make a correct comparison by the present worth method are: Alternative(A) Alternative (B) -25,000 -10,000 10,000 First Cost M&O cost/year 3,000 Salvage value 6,000 -2,000 Life 4 O A n 4 years for A and n =4 years for B OB. None of the above O C. n = 4 years for A and n =3 years for B O D. n = 12 years for A and n = 12 years for B
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