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Q5) For the cash flows shown, determine which service alternative should be selected? Assume that the interest rate = 10% per year and. (7 Marks)
Q5) For the cash flows shown, determine which service alternative should be selected? Assume that the interest rate = 10% per year and. (7 Marks) A B Initial cost, $ 300.000 600,000 Annual cost, S/year 30,000 Annual cost started at 22,000 year 4, S/year Extra cost every 6 40,000 years, $ Cost started at year 4 10,000 to 8 Salvage value, $ 30,000 110,000 Life, Years 1- Capitalized cost (CC) of Alternative A: A) -493,766 B) -473,766 C) -482 010 D)-461,421 8)-453,730 2- Capitalizes cost (CC) of alternative B A) -851,844 8)-920,056 C)-875,631 D)-951,844 E)-984 008 3- Which alternative will be selected on the basis of their capitalized cost analyses? Justify your
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