Evaluate the two alternatives A and B and decide the economic justified alternative using: Present worth method, Annual worth method , Future worth method I.R.R method , E.R.R Method , E.R.R.R method M.A.R.R = 15% , the details of alternatives are shown in the table below Alternatives A B Investments $60,000 $75,000 Useful life (years) 10 5 Annual disbursements $25,000 $35,000 Annual revenues $45,000 $60,000 Salvage values $5,000 $10,000
Evaluate the two alternatives A and B and decide the economic justified alternative using: Present worth method, Annual worth method , Future worth method I.R.R method , E.R.R Method , E.R.R.R method M.A.R.R = 15% , the details of alternatives are shown in the table below Alternatives A B Investments $60,000 $75,000 Useful life (years) 10 5 Annual disbursements $25,000 $35,000 Annual revenues $45,000 $60,000 Salvage values $5,000 $10,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 16E
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