Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron facility. Which alternative would be selected based the present worth, if the interest rate is 10% per year? Please note: The alternatives are mutually exclusive! Alternative First Cost, $ Operational & Maintenance Costs, $ -25,000 |-10,000 Salvage Value, $ Life, years a Alternative A, PW=-$250,349 A |-100,000 -140,000 20,000 30,000 12 4 h Alternative A, PW=-$355,931 Alternative B, PW = -$198,578 Alternative A, PW = -$120,968 d.
Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron facility. Which alternative would be selected based the present worth, if the interest rate is 10% per year? Please note: The alternatives are mutually exclusive! Alternative First Cost, $ Operational & Maintenance Costs, $ -25,000 |-10,000 Salvage Value, $ Life, years a Alternative A, PW=-$250,349 A |-100,000 -140,000 20,000 30,000 12 4 h Alternative A, PW=-$355,931 Alternative B, PW = -$198,578 Alternative A, PW = -$120,968 d.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron facility. Which alternative would be selected based the present worth, if the interest rate is 10% per year?
Please note: The alternatives are mutually exclusive!
Alternative
A
B
First Cost, $
Operational & Maintenance Costs, $ -25,000 ||-10,000
Salvage Value, $
Life, years
|-100,000|-140,000
20,000 30,000
4
12
Alternative A, PW= -$250,349
а.
Alternative A, PW= -$355,931
Ob.
Alternative B, PW = -$198,578
C.
Alternative A, PW= -$120,968
Od.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdfb8c355-c7f5-4d58-be91-34f49393af2c%2F5e7de895-23d0-469c-b0ee-146297d84031%2Farpsn8a_processed.png&w=3840&q=75)
Transcribed Image Text:Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron facility. Which alternative would be selected based the present worth, if the interest rate is 10% per year?
Please note: The alternatives are mutually exclusive!
Alternative
A
B
First Cost, $
Operational & Maintenance Costs, $ -25,000 ||-10,000
Salvage Value, $
Life, years
|-100,000|-140,000
20,000 30,000
4
12
Alternative A, PW= -$250,349
а.
Alternative A, PW= -$355,931
Ob.
Alternative B, PW = -$198,578
C.
Alternative A, PW= -$120,968
Od.
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