Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron facility. Which alternative would be selected based the present worth, if the interest rate is 10% per year? Please note: The alternatives are mutually exclusive! Alternative First Cost, $ Operational & Maintenance Costs, $ -25,000 |-10,000 Salvage Value, $ Life, years a Alternative A, PW=-$250,349 A |-100,000 -140,000 20,000 30,000 12 4 h Alternative A, PW=-$355,931 Alternative B, PW = -$198,578 Alternative A, PW = -$120,968 d.
Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron facility. Which alternative would be selected based the present worth, if the interest rate is 10% per year? Please note: The alternatives are mutually exclusive! Alternative First Cost, $ Operational & Maintenance Costs, $ -25,000 |-10,000 Salvage Value, $ Life, years a Alternative A, PW=-$250,349 A |-100,000 -140,000 20,000 30,000 12 4 h Alternative A, PW=-$355,931 Alternative B, PW = -$198,578 Alternative A, PW = -$120,968 d.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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