The following data is available for three different alternatives. Assume an interest rate of 9% per year, compounded annually. Alternative A 5,000 725 infinite Initial Cost Annual Benefit Useful Life (yrs) Alternative B Choose Alternative A because it lasts the longest 2,100 1,681 10 Alternative C 10,000 4,313 5 Alternatives B and C are replaced at the end of their useful lives with identical replacements. Using present worth analysis, find the best alternative.

The following data is available for three different alternatives. Assume an interest rate of 9% per year, compounded annually. Alternative A 5,000 725 infinite Initial Cost Annual Benefit Useful Life (yrs) Alternative B Choose Alternative A because it lasts the longest 2,100 1,681 10 Alternative C 10,000 4,313 5 Alternatives B and C are replaced at the end of their useful lives with identical replacements. Using present worth analysis, find the best alternative.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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