Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Given the financial data for three mutually exclusive alternatives in the table below, determine the best alternative using the annual cash flow analysis for a interest rate
of 8% per year.
A B c
First cost
$45,000 $25.000 $20,000
O &M Cost/ year
10,000
4,000
1,900
Benefit/year
18,000
13,000
9,000
Salvage value
3,000
6,000
4,600
Life in years
5 for all 3 alternatives
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Transcribed Image Text:Given the financial data for three mutually exclusive alternatives in the table below, determine the best alternative using the annual cash flow analysis for a interest rate of 8% per year. A B c First cost $45,000 $25.000 $20,000 O &M Cost/ year 10,000 4,000 1,900 Benefit/year 18,000 13,000 9,000 Salvage value 3,000 6,000 4,600 Life in years 5 for all 3 alternatives
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