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26. Your company is considering three mutually exclusive alternatives for implementing an automated production line in the factory. Each production line meets the same service
26. Your company is considering three mutually exclusive alternatives for implementing an automated production line in the factory. Each production line meets the same service requirements, but differences in capital investment and benefits. The study period is 10 years, and the useful lives of all three alternatives are also 10 years. Market values of all alternatives are assumed to be zero. If your MARR is 10% per year, which alternative should be selected in view of the cash flow diagrams shown in below? Use present worth method.
Alternative A $380,000 Alternative B Based on the problem statement, what is the correct formula to calculate the present worth of alternative A? PWa=380000+68000(A/P,10%,10) PWa=380000+68000(P/A,10%,10) PWa=380000+68000(P/A,10%,10) PWa=380000+68000(P/F,10%,10) Based on question 26 , how to choose the best alternative by using the present worth method? if the the present worths for all alternatives are positive, choose the alternative which has the least present worth if the the present worths for all alternatives are positive, choose the alternative which has the greatest present worth if the the present worths for all alternatives are positive, choose the one that has the least negative present worth Question 28 Based on question 26 , what is the present worth of alternative B ? $100,789.00 $37,832.8 $470,000.00 $198,798.00 Question 29 Based on question 26, which alternative is the best one? No answer text provided. Alternative B Alternative C Alternative A
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