Savage value is taken as 400 and 600 because they are same ? What if there are different numbers..how can we calculate that. Please explain clearly Two construction equipment's are being analyzed:YearAlternative AAlternative B0-2500-1500+600+4002+600+4003+600+4004+600+4005+600+4006+600+4007+600+4008+600+400Based on an 3% interest rate which alternative should be selected based on1- The Net Present Worth (NPW).2- The Net future Worth (NFW).1

In the present worth analysis, we find the present values of all the cash flows. In the future worth…

Two construction equipment's are being analyzed: Year Alternative A Alternative B 0 -2500 -1500 1 +600 +400 2 +600 +400 3 +600 +400 4 +600 +400 5 +600 +400 6 +600 +400 7 +600 +400 8 +600 +400 Based on an 3 % interest rate which alternative should be selected based on 1- The Net Present Worth (NPW). 2- The Net future Worth (NFW).

Two construction equipment's are being analyzed: Year Alternative A Alternative B 0 -2500 -1500 1 +600 +400 2 +600 +400 3 +600 +400 4 +600 +400 5 +600 +400 6 +600 +400 7 +600 +400 8 +600 +400 Based on an 3 % interest rate which alternative should be selected based on 1- The Net Present Worth (NPW). 2- The Net future Worth (NFW).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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