ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Project A costs $35,000 initially, has a 4-year life and incurs $4,000 in annual year-end costs. Project B costs $39,000 initially, has a 5-year life and incurs $4,500 in annual year-end costs. If the company's required return is 10%, calculate the equivalent annual cost of each project.
Options
Project A $16,788; Project B $15,211 |
|
Project A $13,452; Project B $12,924 |
|
Project A $15,041; Project B $14,788 |
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Project A $12,623; Project B $11,679 |
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Project A $14,190; Project B $13,250 |
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