Two different alternatives are being compared. Using Net Present Worth Analysis which alternative is best? Use an interest rate of 9%. Alternative Initial Cost Annual Benefit Salvage Value Useful Life (years) A B $ 1,425 $ 2,168 $ 1,325 $ 620 24 465 $ 897 3 Choose either alternative

Two different alternatives are being compared. Using Net Present Worth Analysis which alternative is best? Use an interest rate of 9%. Alternative Initial Cost Annual Benefit Salvage Value Useful Life (years) A B $ 1,425 $ 2,168 $ 1,325 $ 620 24 465 $ 897 3 Choose either alternative

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Two different alternatives are being compared. Using Net Present Worth Analysis
which alternative is best? Use an interest rate of 9%.
Alternative
Initial Cost
Annual Benefit
Salvage Value
Useful Life (years)
$ 1,425 $ 2,168
$ 1,325 $
465 $
620
2$
897
3
9.
Choose either alternative
A is the best alternative
Choose neither alternative
B is the best alternative

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