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Alternative Fisrt cost Annual cost Annual Savings Life Year A $ (1,100,000.00) $ (24,000.00) $ 180,000.00 20 B $ (1,500,000.00) $ (36,000.00) $ 245,000.00 20
| Alternative | Fisrt cost | Annual cost | Annual Savings | Life Year |
| A | $ (1,100,000.00) | $ (24,000.00) | $ 180,000.00 | 20 |
| B | $ (1,500,000.00) | $ (36,000.00) | $ 245,000.00 | 20 |
| C | $ (1,750,000.00) | $ (41,000.00) | $ 295,000.00 | 20 |
| 9.24 The local electric company may renovate a number of substations within its system. Various costs and savings can be anticipated, depending on the type of renovation performed. Using benefit/cost analysis and an interest rate of 12%, determine which alterna- tive should be chosen. |
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
