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Problem1. (20 pts) Three mutually exclusive projects are being considered: 8 When each project reached the end of its useful life, it would be sold
Problem1. (20 pts) Three mutually exclusive projects are being considered: 8 When each project reached the end of its useful life, it would be sold for its salvage value and there would be no replacement First cost Uniform annual 250 350 525 $1000 $2000 $3000 benefit (a) Determine the EUAW (Equivalent Uniform Annual Worth) of each 200 300 400 alternative for interest rate from 0% to 20%, in increment of 4% and complete the table 1 Salvage value Useful life, in years Table 1. EUAW vs 1% (10 pts EUAW Alt. AAlt. B Table 2. Choice Table (4 pts) Interest rate Best Choice 0968 i 5% 5%
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