Annual expenses for two alternatives have been estimated on different bases as follows: If the average general

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Annual expenses for two alternatives have been estimated on different bases as follows:

Alternative A Alternative B Annual Expenses Annual Expenses Estimated in Real End of Estimated in Actual Dollars Dollars

If the average general price inflation rate is expected to be 4% per year and the real rate of interest is 8% per year, show which alternative has the least negative equivalent worth in the base period?

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Question Posted: Dec 06, 2018 09:36 AM

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Annual expenses for two alternatives have been estimated on different bases as follows: If the average general

Question:

Alternative A Alternative B Annual Expenses Annual Expenses Estimated in Real End of Estimated in Actual Dollars Dollars with b = 0 Year $120,000 132,000 148,000 160,000 $100,000 110,000 120,000 130,000 3 4

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f 4 per year i r 8 per year b 0 Alternative A Estimates are in actu...View the full answer

Engineering Economy

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