Two alternatives have the following cash flows: Alternative A First Cost $40,000 Annual Income 14,000 Salvage Value 4,000 Useful Life 3 years Alternative B $75,000 14,600 6,000 6 Years At a 6% interest rate, which alternative should be selected? A because the NPW of A is greater than the NPW of B B because the NPW of B is greater than the NPW of A Both Neither

Two alternatives have the following cash flows: Alternative A First Cost $40,000 Annual Income 14,000 Salvage Value 4,000 Useful Life 3 years Alternative B $75,000 14,600 6,000 6 Years At a 6% interest rate, which alternative should be selected? A because the NPW of A is greater than the NPW of B B because the NPW of B is greater than the NPW of A Both Neither

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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