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6.5 Compare the alternatives shown in the table below on the basis of a future worth analysis, (FWA) using an interest rate of 8% per

6.5 Compare the alternatives shown in the table below on the basis of a future worth analysis, (FWA) using an interest rate of 8% per year.

6.5

Alternative X

Alternative Y

First Cost

-$69,000

-$90,000

Operating Cost

-$12,000/YR

-$7,500/YR

Salvage Value

$9,000

$3,000

Useful Life

3 Years

6 Years

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