The NPW of alternative A is. Group of answer choices $13,420 $17,380 $11,000 $6,000 Option A Initial Cost $15,000 Annual Benefit - $ - 8,000 Salvage Value - $5,000 Life in Years - 2 years Interest 10% a year compounded annually (Hint: Pay attention that infinity is the least common multiple for service lives of these three alternatives. In other words, evaluate all three alternatives using the present worth formula for perpetual cash flows.)
The NPW of alternative A is. Group of answer choices $13,420 $17,380 $11,000 $6,000 Option A Initial Cost $15,000 Annual Benefit - $ - 8,000 Salvage Value - $5,000 Life in Years - 2 years Interest 10% a year compounded annually (Hint: Pay attention that infinity is the least common multiple for service lives of these three alternatives. In other words, evaluate all three alternatives using the present worth formula for perpetual cash flows.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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