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Given the following two alternatives and using the repeatability assumption and MARR=15%/year, the equation for computing the present worth of vendor B is Vendor A
Given the following two alternatives and using the repeatability assumption and MARR=15%/year, the equation for computing the present worth of vendor B is Vendor A - 15,000 -3500 Vendor B - 18000 -3100 First Cost, $ Annual cost, $ per year Salvage Value, $ Life, years 1000 2000 3 4 OPW(B)--18.000-18.000(P/F, 15%. 4)-18,000(P/F, 15%, 8)-3,100(P/A, 15%, 12)+2,000(P/F, 15%, 4)+2,000(P/F, 15%, 8) OPW(B)=-18,000-18.000(P/F. 15%, 4)-18,000(P/F, 15%, 8)-3,100(P/A, 15%, 12)+2,000(P/F, 15%, 4)+2,000(P/F, 15%, 8)+2,000(P/F, 15%, 12) OPW(B)=-18,000-18.000(P/F, 15%, 4)-18,000(P/F, 15%, 8)-18,000(P/F, 15%, 12)-3.100(P/A. 15%, 12)+2,000(P/F, 15%, 4)+2,000(P/F, 15%, 8)+2,000(P/F, 15%, 12) OPW(B)--18.000-18.000(P/F, 15%, 4)-18,000(P/F, 15%, 8)-18,000(P/F, 15%, 12)-3.100(P/A, 15%, 12)+2,000(P/F, 15%, 4)+2,000(P/F, 15%, 8)+2,000(P/F, 15%, 12)
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