Question
A public utility is considering the following 3 mutually exclusive alternatives to supplying water for a small town: Alt A Alt B Alt C Initial
| A public utility is considering the following 3 mutually exclusive alternatives to supplying water for a small town: Alt A | Alt B | Alt C | |
| Initial cost $ | 240,000 | 350,000 | 650,000 |
| Maintenance $/yr | 8,000 | 12,000 | 7,000 |
| Sales $/yr | 80,000 | 200,000 | 180,000 |
| Life (yrs) | 9 | 12 | Infinite |
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance
9th Edition
1133190197, 978-1133190196
