The capitalized cost of alternative B is nearest: (a) $590,000 (b) $625,000 (c) $734,000 (d) $850,000 Problem

Question:

The capitalized cost of alternative B is nearest:

(a) $ˆ’590,000

(b) $ˆ’625,000

(d) $ˆ’850,000

Problem is based on the following cash flows for alternatives A and B at an interest rate of 10% per year.

Alternative First cost, $ AOC, $/year Salvage value, $ Life, years B -90,000 -750,000 - 50,000 -10,000 2,000,000 8,000 5

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Dec 24, 2018 09:10 AM

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The capitalized cost of alternative B is nearest: (a) $590,000 (b) $625,000 (c) $734,000 (d) $850,000 Problem

Question:

Alternative First cost, $ AOC, $/year Salvage value, $ Life, years B -90,000 -750,000 - 50,000 -10,000 2,000,000 8,000 5

Step by Step Answer:

CC B 750000 ...View the full answer

Engineering Economy

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