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Do not use excel to solve this problem. Only Hand Calculations using Annual worth analysis, present worth analysis, IRR, etc . 3 Solve the following
Do not use excel to solve this problem. Only Hand Calculations using Annual worth analysis, present worth analysis, IRR, etc .
3 Solve the following problems at the same conditions. at the annual interest rate 10%. Assume repeatability is possible Initial Cost Annual costs Annual benefit $30,000 2000 Salvage 15,000 Useful lives 6 years 7,000 1) Calculate the Net Present Worth (present worth of all benefits minus present worth of all costs) alysis period is 12 years. Consider the salvage at the end of useful life a benefit. (15 points) 2) Calculate the Net Equivalent Uniform Annual Benefit (equivalent uniform annual benefit minus equivalent uniform annual cost) when the analysis period is 18 years. Consider the salvage at the end of useful life a benefit. (15 points)Step by Step Solution
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