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Ch:6 9 Using annual cash flow analysis, determine the better alternative. Assume that alternatives are replaced at the end of their useful lives. The interest
Ch:6 9 Using annual cash flow analysis, determine the better alternative. Assume that alternatives are replaced at the end of their useful lives. The interest rate is 10%. Options=> Alt = X Alt = Y Initial cost 4,000 6,000 Annual cost 1,000 500 Annual benefit 2,000 2,200 Salvage value 3,000 1,000 Life in years (n) 5 1 2
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