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).
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).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ed0baf6-5460-47ba-923e-124ab3b39971%2F59a86477-0288-4aaa-ad66-15f5d4d47a5e%2Fy45r5ph_processed.jpeg&w=3840&q=75)
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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