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Consider the two mutually exclusive alternatives below. Determine which alternative is preferable at an interest rate of 11% per year. Use the repeatability assumption
Consider the two mutually exclusive alternatives below. Determine which alternative is preferable at an interest rate of 11% per year. Use the repeatability assumption with PW method. Alternative M Capital investment Annual expense $400,000 $4000 $189,000 $94,500 Annual revenue $309,000 $194,500 Salvage value Life, years $1.5X $X 10 15
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CONCEPT When the alternatives have different useful lives their present worth will not be comparable ...
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
16th edition
133439275, 133439274, 9780133819014 , 978-0133439274
