ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 14% per year and a study period of
10 years.
Alternative
First Cost
AOC, per Year
Annual Increase in Operating
Cost, per Year
Salvage Value
Life, Years
с
$-48,000
$-9,000
$-1,400
$8,000
10
The present worth of alternative C is $ -117974.14
Alternative D offers the lower present worth.
D
$-34,000
$-9,000
$-1,500
$1,400
5
and that of alternative D is $ -73129.34 x
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Transcribed Image Text:Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 14% per year and a study period of 10 years. Alternative First Cost AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years с $-48,000 $-9,000 $-1,400 $8,000 10 The present worth of alternative C is $ -117974.14 Alternative D offers the lower present worth. D $-34,000 $-9,000 $-1,500 $1,400 5 and that of alternative D is $ -73129.34 x
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