Question
Determine the better of the two alternatives using the present worth analysis. Use an interest rate of 8%. Alt. X Alt.Y Initial cost $12,500 $8,900
Determine the better of the two alternatives using the present worth analysis. Use an interest rate of 8%.
|
| Alt. X | Alt.Y |
| Initial cost | $12,500 | $8,900 |
| Annual benefit | $6,800 | $2,000 |
| Salvage value | $5,000 | $8,900 |
| Life in years | 2 years | 3 Years |
| MARR | 8% | |
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
0132423502, 978-0132423502
