There are two investment alternatives. Alternative A has an initial investment cost of 280000 TL. Yearly revenues of alternative A are 100000 TL and yearly expenses are 30000 TL. Additionally, there will be maintenance cost once every two years at 19000 TL. It has a useful life of 6 years and the salvage value at the end of 6 years is given as 50000 TL. Alternative B has an initial investment cost of 230000 TL. Yearly revenues of alternative B are 60000 TL and yearly expenses are 25000 TL. It has a useful life of 12 years and the salvage value at the end of 12 years is given as 35000 TL. If the MARR is determined as 8%, choose the best alternative using present worth method. (Assume repeatability) A)PV of A is 32882 TL and PV of B is 47662. B should be chosen. B)PV of A is 87218 TL and PV of B is 51013. A should be chosen. C)PV of A is 49947 TL and PV of B is 51013. B should be chosen. D)PV of A is 50580 TL and PV of B is 59308. B should be chosen. E)PV of A is 88324 TL and PV of B is 59308. A should be chosen. F)PV of A is 53603 TL and PV of B is 47662. A should be chosen.
There are two investment alternatives. Alternative A has an initial investment cost of 280000 TL. Yearly revenues of alternative A are 100000 TL and yearly expenses are 30000 TL. Additionally, there will be maintenance cost once every two years at 19000 TL. It has a useful life of 6 years and the salvage value at the end of 6 years is given as 50000 TL. Alternative B has an initial investment cost of 230000 TL. Yearly revenues of alternative B are 60000 TL and yearly expenses are 25000 TL. It has a useful life of 12 years and the salvage value at the end of 12 years is given as 35000 TL. If the MARR is determined as 8%, choose the best alternative using present worth method. (Assume repeatability)
A)PV of A is 32882 TL and PV of B is 47662. B should be chosen.
B)PV of A is 87218 TL and PV of B is 51013. A should be chosen.
C)PV of A is 49947 TL and PV of B is 51013. B should be chosen.
D)PV of A is 50580 TL and PV of B is 59308. B should be chosen.
E)PV of A is 88324 TL and PV of B is 59308. A should be chosen.
F)PV of A is 53603 TL and PV of B is 47662. A should be chosen.
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