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Determine the absolute difference in the present worth values for the following two options at an interest rate of 10% per year. Option 1 has
Determine the absolute difference in the present worth values for the following two options at an interest rate of 10% per year. Option 1 has a cost of $15,000 in year 1; costs will escalate at an interest rate of 2% in years 2 through 5. Option 2 has a cost of $13,500 in year 1; costs will escalate at an interest rate of 3% in years 2 through 5. $5,691 $4,320 $5,447 $4,924 $3,698 $6.001
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