The cash flows for two small raw water treatment systems are shown. Determine which should be selected on the basis of an annual worth analysis at 10% per year interest. MF UF First cost, $ -33,000 -51,000 Annual cost, $ per year -8,000 -3,500 Salvage value, $ Life, years 4,000 11,000 3 6
The cash flows for two small raw water treatment systems are shown. Determine which should be selected on the basis of an annual worth analysis at 10% per year interest. MF UF First cost, $ -33,000 -51,000 Annual cost, $ per year -8,000 -3,500 Salvage value, $ Life, years 4,000 11,000 3 6
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The cash flows for two small raw water treatment systems are shown. Determine which
should be selected on the basis of an annual worth analysis at 10% per year interest.
*please answer in a neat and clear way.
Transcribed Image Text:The cash flows for two small raw water treatment systems are shown. Determine which
should be selected on the basis of an annual worth analysis at 10% per year interest.
MF
UF
First cost, $
-33,000
-51,000
Annual cost, $ per year
-8,000
-3,500
Salvage value, $
Life, years
4,000
11,000
3
6
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