Two construction equipment's are being analyzed: Year Alternative A Alternative B 0 -2500 -1500 1 +600 +400 2 +600 +400 3 +600 +400 4 +600 +400 5 +600 +400 6 +600 +400 7 +600 +400 8 +600 +400 Based on an 3 % interest rate which alternative should be selected based on 1- The Net Present Worth (NPW). 2- The Net future Worth (NFW).

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Savage value is taken as 400 and 600 because they are same ? What if there are different numbers..how can we calculate that. Please explain clearly 

Two construction equipment's are being analyzed:
Year
Alternative A
Alternative B
0
-2500
-1500
+600
+400
2
+600
+400
3
+600
+400
4
+600
+400
5
+600
+400
6
+600
+400
7
+600
+400
8
+600
+400
Based on an 3% interest rate which alternative should be selected based on
1- The Net Present Worth (NPW).
2- The Net future Worth (NFW).
1
Transcribed Image Text:Two construction equipment's are being analyzed: Year Alternative A Alternative B 0 -2500 -1500 +600 +400 2 +600 +400 3 +600 +400 4 +600 +400 5 +600 +400 6 +600 +400 7 +600 +400 8 +600 +400 Based on an 3% interest rate which alternative should be selected based on 1- The Net Present Worth (NPW). 2- The Net future Worth (NFW). 1
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