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Please help Example 5-5 Applying Present Worth using Analysis Period Alt. 1 Alt. 2 $50,000 $75,000 Alternatives Initial Cost Estimated salvage value at end of
Please help Example 5-5 Applying Present Worth using Analysis Period Alt. 1 Alt. 2 $50,000 $75,000 Alternatives Initial Cost Estimated salvage value at end of useful life $10,000 $12,000 Useful Life Estimated market value, end of 10-year $20,000 $15,000 7 years 13 years NPWalt.1--50,000 + (10,000-50,000) (P/F, 8%, 7) + 20,000(P/F, 896, 10) -50,000-40,000 (0.5835)+20,000(0.4632) -$64,076 NPWalt.2 :-75,000 + 15,000(P/F, 8%, 10) 75,00015,000 (0.5835) -$68,052
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