
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The cash flows for two small raw water treatment systems are shown. Determine which
should be selected on the basis of an annual worth analysis at 10% per year interest.
*please answer in a neat and clear way.

Transcribed Image Text:The cash flows for two small raw water treatment systems are shown. Determine which
should be selected on the basis of an annual worth analysis at 10% per year interest.
MF
UF
First cost, $
-33,000
-51,000
Annual cost, $ per year
-8,000
-3,500
Salvage value, $
Life, years
4,000
11,000
3
6
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