Part 1:

Reconfirm your recommendation for part #1 above using rate of return analysis. Explain the basis for your conclusion on your spreadsheet.

Enter the calculated rate of return rounded to the nearest tenth of a percent (without the percent sign).

Conduct a present worth of cost analysis for the following problem and fill in the information requested. Assume the interest rate is 10%. Alternative . B First Cost $34,000 $48,000 Annual O&M 4,300 3,700 Salvage Value 4,000 0 Overhaul (Year 6) None 9,000 Useful Life (Years) 5 10 $ 1. PW of Cost (A) (round to nearest $100, numbers only) $ 2. PW of Cost (B) (round to nearest $100, numbers only) 3. Which alternative do you recommend