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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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
Transcribed Image Text:• The Rickshaw Dumpling food truck has a useful life of 4 years.
• The King Taco food truck has a useful life of 2 years.
Tables below provide the series of cash flows for investment in the Rickshaw Dumpling
food truck and the King Taco food truck.
Considering that the two investments are mutually exclusive, take a common-multiple
approach. What is the higher equivalent uniform annual worth of the two investments,
considering an interest rate of 4 percent?
Round your answer to the nearest whole number. Do not use currency signs such as
"$." Observation: The equivalent uniform annual worth may be positive or negative.
CASH FLOWS FOR RICKSHAW DUMPLING
Year Benefits Costs
0 0
1
2
3
4
(42,928)
10,211 (1,166)
15,797 (4,270)
11,955 (1,691)
5,867 (3,576)
CASH FLOWS FOR KING TACO
Year Benefits Costs
0 0
1
2
(37,996)
5,866 (2,181)
18,052 (2,699)
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