Question
Compare the two following alternatives in terms of present worth using MARR = 4% for a study period of 3 years Assume that the salvage
Compare the two following alternatives in terms of present worth using MARR = 4% for a study period of 3 years Assume that the salvage value does not change depending on year sold. Alternative 1: First cost: 28,000 Yearly cost 8,000 Salvage value: 7,000 Lifetime: 4 Alternative 2: First cost: 79,000 Yearly cost 4,000 Salvage value: 12,000 Lifetime: 9 Your answer: Alt 1: $-37,381, Alt 2: $-131,063 Alt 1: $-112,143, Alt 2: $-238,297 O Alt 1: $-85,757, Alt 2: $-39,716 0 0 Alt 1: $-127,535, Alt 2: $-87,376 Alt 1: $-57,171, Alt 2: $-242,269 O Alt 1: $-98,950, Alt 2: $-139,007 O Alt 1: $-140,729, Alt 2: $-99,291 O Alt 1: $-17,591, Alt 2: $-162,836 Alt 1: $-43,978, Alt 2: $-79,432
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