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help with this problem 10% interest M N O Present Worth / Capitalized Cort Worth You have been assigned to conduct an Capitalized Cost (CC)

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help with this problem

10% interest

M N O Present Worth / Capitalized Cort Worth You have been assigned to conduct an Capitalized Cost (CC) analysis of the three most promising alternative solutions to an ongoing problem at your company. The estimated cost and salvage values for each of the alternatives is shown in table below. The lives of each alternative are also given You note that the lives are different; one infinite and two finite lengths. (see page 143 in 8th Ed.) You inquire and are assured that the equipment will be available at that the estimates are valid and repeatable. Based on a Capitalized cost analysis which alternative do you choose? Alternative E F First Cost -75,000 -350,000 850,000 AOC. per 45.000 30,000 - 1,000 year Salvage Value 750,000 40,000 2 90,000 4 Life, years

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