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A company has two alternatives, X and Y, to increase the plant's productivity with the nibyer parameters for each alternative as shown in the
A company has two alternatives, X and Y, to increase the plant's productivity with the nibyer parameters for each alternative as shown in the table below. Which one should be selected on the basis of an annual worth analysis at an interest rate of 12% per year? Include a cash flow diagram for each alternative. Alternative X First cost, $ -45,000 Maintenance cost, $/year -8,000 Salvage value, $ 2,000 Life, years 3 Y -58,000 -4,000 dooM 12,000 5 $1,500/year JA
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