The alternatives shown are to be compared on the basis of their present worth values. At an interest rate of 8% per year, the values of n that you should use in the uniform series factors to make a correct comparison by the present worth method are: Alternative (B) Alternative(A) -10,000 -25,000 3,000 First Cost M&O cost/year 10,000 Salvage value 6,000 -2,000 Life 4 O A n =4 years for A and n =4 years for B OB. None of the above OCn=4 years for A and n=3 years for B OD. n = 12 years for A and n = 12 years for B
The alternatives shown are to be compared on the basis of their present worth values. At an interest rate of 8% per year, the values of n that you should use in the uniform series factors to make a correct comparison by the present worth method are: Alternative (B) Alternative(A) -10,000 -25,000 3,000 First Cost M&O cost/year 10,000 Salvage value 6,000 -2,000 Life 4 O A n =4 years for A and n =4 years for B OB. None of the above OCn=4 years for A and n=3 years for B OD. n = 12 years for A and n = 12 years for B
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 37P
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