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Given the following two alternatives, The correct equation for computing the AW of alternative Round Knife is: Straight Knife Round Knife First Cost, $ -250,000
Given the following two alternatives, The correct equation for computing the AW of alternative Round Knife is: Straight Knife Round Knife First Cost, $ -250,000 -170,000 AOC, $/year -31,000 -35,000 Overhaul in year 2, -26,000 $ Salvage value, $ 40,000 10,000 Life, years 6 4 AW(Round)=-250,000(A/P,10%,6) - 31,000 - 40,000(A/F,10%,6) OAW(Round)= -250,000(A/P,10%,6) - 31,000 + 40,000(A/F,10%,6) AW(Round)=-250,000 - 31,000 (P/A, 10%, 6) + 40,000(P/F,10%,6) OAW(Round)=-250,000 - 31,000 + 40,000(P/F,10%,6)
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