The following data is available for three different alternatives. The do nothing is an available option. Alternative A Alternative B Alternative C Initial Cost ($) 20,000 15,000 10,000 Uniform Annual Benefits ($) 6607 7,500 3,000 Uniform Annual Cost ($) 1,000 1,500 700 Useful Life (Years) 5. 10 Alternatives B and C can be replaced at the end of their useful lives with identical replacements. The interest rate is 15%. Using appropriate analysis period to compare the alternatives, find the net present worth of Alternative A (NPWA). Note: Round your answer to two decimal places (ex.: 2363.24)
The following data is available for three different alternatives. The do nothing is an available option. Alternative A Alternative B Alternative C Initial Cost ($) 20,000 15,000 10,000 Uniform Annual Benefits ($) 6607 7,500 3,000 Uniform Annual Cost ($) 1,000 1,500 700 Useful Life (Years) 5. 10 Alternatives B and C can be replaced at the end of their useful lives with identical replacements. The interest rate is 15%. Using appropriate analysis period to compare the alternatives, find the net present worth of Alternative A (NPWA). Note: Round your answer to two decimal places (ex.: 2363.24)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The following data is available for three different alternatives. The do nothing is an available option.
Alternative A
Alternative B
Alternative C
Initial Cost ($)
20,000
15,000
10,000
Uniform Annual Benefits ($)
6607
7,500
3,000
Uniform Annual Cost ($)
1,000
1,500
700
Useful Life (Years)
5
10
Alternatives B and C can be replaced at the end of their useful lives with identical replacements. The interest rate is 15%.
Using appropriate analysis period to compare the alternatives, find the net present worth of Alternative A (NPWA).
Note: Round your answer to two decimal places (ex.: 2363.24)
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