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Question A company is evaluating three different systems to reduced energy costs, in addition to the cost of the system itself, each system requires
Question A company is evaluating three different systems to reduced energy costs, in addition to the cost of the system itself, each system requires an installation cost of $100,000, Addisonal known in on each altemative is as follows Ademative Cost of system without instalation Annual cost Annual savings $210,000 $30,000 $70,000 $380,000 Balvage value $200,000 $45,000 $95,000 $260,000 $700,000 $45.000 $185.000 $380,000 The useful life of the systems is 10 years. If none of the alternatives is economical, the company will not continue with the plan. Use present worth analysis with 8% interest to answer the following question Select the closest choice to your solution and ONLY TYPE THE LETTER IN THE BLANK (A,B,C,D) (01) The present worth of the benefit for Alternative X is closest t A. $618,574 8. $731,042 C. $468,617 D $562,340 Answer for (Q1) (22) The present worth of the cost for Alternative Y is closest to (03) A $781,950 8. $651,625 C $800.145 D. $1,016,535 Answer for (Q2) The net present worth for Alternative Z is closest to A $247,958 8. $167,847 C. $225,416 D. $293,041 Answer for (Q3): (04) Which mutually exclusive alternative must be selected?
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