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A company wants to decide between two teams, A and B. The data per team are: A B initial cost 6,700 16,900 annual O&M 1,500

A company wants to decide between two teams, A and B. The data per team are:

A

B

initial cost

6,700

16,900

annual O&M

1,500

1,800

annual profit

4,000

5,500

residual value

1,000

3,500

useful life (years)

3

6

What is the expression for PW(B)?

a. -16900 + 3700 (P/A,i%,6) + 3500 (P/F,i%,6)

b. -16900 + 3700 (P/A,i%,3) + 3500 (P/F,i%,3) c. -16900 + 5500 (P/A,i%,6) + 3500 (P/F,i%,6) d. -16900 + 3700 (A/P,i%,6) + 3500 (F/P,i%,6)

e. None of the above

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