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
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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2. Solve the given question and give the correct answer.
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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