The following three mutually exclusive alternatives are to be compared using the present worth analysis:

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question 14
The following three mutually exclusive alternatives are to be compared using the present worth analysis:
Alt. X
Alt. Y
Alt. Z
First cost
48,000
63000
67000
Annual Maintenance and Operating costs
10,600
9000
12000
Annual benefits
36,000
31000
37000
Salvage value
13,400
19000
22000
Useful life, in years
4.
12
6.
At an interest rate of 10% per year, the net present worth (NPW) of Alt. X is:
Transcribed Image Text:Question 14 The following three mutually exclusive alternatives are to be compared using the present worth analysis: Alt. X Alt. Y Alt. Z First cost 48,000 63000 67000 Annual Maintenance and Operating costs 10,600 9000 12000 Annual benefits 36,000 31000 37000 Salvage value 13,400 19000 22000 Useful life, in years 4. 12 6. At an interest rate of 10% per year, the net present worth (NPW) of Alt. X is:
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