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You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice? Alternative First Cost Maintenance cost, per Year Salvage Value Life X $-40,000 $-14000 $1,500 5 years The present worth of alternative Y, (in $) Round off to the nearest two (2) decimal places, include sign Add your answer Y $-65,000 $-5000 $7,500 5 years

You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice? Alternative First Cost Maintenance cost, per Year Salvage Value Life X $-40,000 $-14000 $1,500 5 years The present worth of alternative Y, (in $) Round off to the nearest two (2) decimal places, include sign Add your answer Y $-65,000 $-5000 $7,500 5 years

Structural Analysis
Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice? Alternative First Cost Maintenance cost, per Year Salvage Value Life X Add your answer $-40,000 $-14000 $1,500 5 years The present worth of alternative Y, (in $) Round off to the nearest two (2) decimal places, include sign Y $-65,000 $-5000 $7,500 5 years
Transcribed Image Text:You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Why is yours the correct choice? Alternative First Cost Maintenance cost, per Year Salvage Value Life X Add your answer $-40,000 $-14000 $1,500 5 years The present worth of alternative Y, (in $) Round off to the nearest two (2) decimal places, include sign Y $-65,000 $-5000 $7,500 5 years
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