Given the following data, use present worth analysis to find the best alternative, A, B, or C. Use an analysis period of 12 years and 15% interest. Initial cost Annual benefit Salvage value Useful life A $10,000 6,000 1,000 2 years B с 15,000 $12,000 10,000 -2,000 3 years 5,000 3,000 4 years

Given the following data, use present worth analysis to find the best alternative, A, B, or C. Use an analysis period of 12 years and 15% interest. Initial cost Annual benefit Salvage value Useful life A $10,000 6,000 1,000 2 years B с 15,000 $12,000 10,000 -2,000 3 years 5,000 3,000 4 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Given the following data, use present worth analysis to find the best alternative, A,
B, or C. Use an analysis period of 12 years and 15% interest.
Initial cost
Annual benefit
Salvage value
Useful life
A
$10,000
6,000
1,000
2 years
B
15,000
10,000
-2,000
3 years
с
$12,000
5,000
3,000
4 years

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