Question
Compare three alternatives on the basis of their capitalized costs at i = 12% per year and select the best alternative. Alternative E F G
Compare three alternatives on the basis of their capitalized costs at i = 12% per year and select the best alternative.
| Alternative | E | F | G |
| First Cost | $-80,000 | $-395,000 | $-1,100,000 |
| AOC, per Year | $-70,000 | $-20,000 | $-1,000 |
| Salvage Value | $25,000 | $75,000 | $450,000 |
| Life, Years | 2 | 4 |
The capitalized cost of alternative E is $ , alternative F is $ , and alternative G is $ .
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
3rd Edition
0131494910, 9780131494916
