Three different alternatives shown in table below are being considered by Kal Tech Engineering systems. Assume that alternatives X and Z are replaced at the end of their lives. Data Alternative X Alternative Y Alternative Z Initial Cost $6,000 $1,000 $1,500 Uniform Annual Benefits $810 $125 $ 230 Useful Life in Years 20 ∞ 10 MARR (Interest rate) 12% Refer to the data above.The NPW of alternative “X“ is given by the following. Group of answer choices $84.5 $49.89 $53.4 $57.23 $39.78
Three different alternatives shown in table below are being considered by Kal Tech Engineering systems. Assume that alternatives X and Z are replaced at the end of their lives. Data Alternative X Alternative Y Alternative Z Initial Cost $6,000 $1,000 $1,500 Uniform Annual Benefits $810 $125 $ 230 Useful Life in Years 20 ∞ 10 MARR (Interest rate) 12% Refer to the data above.The NPW of alternative “X“ is given by the following. Group of answer choices $84.5 $49.89 $53.4 $57.23 $39.78
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Three different alternatives shown in table below are being considered by Kal Tech Engineering systems.
Assume that alternatives X and Z are replaced at the end of their lives.
Data |
Alternative X |
Alternative Y |
Alternative Z |
Initial Cost |
$6,000 |
$1,000 |
$1,500 |
Uniform Annual Benefits |
$810 |
$125 |
$ 230 |
Useful Life in Years |
20 |
∞ |
10 |
MARR (Interest rate) |
12% |
Refer to the data above.The NPW of alternative “X“ is given by the following.
Group of answer choices
$84.5
$49.89
$53.4
$57.23
$39.78
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