Question Engineering Economics

Q1: Compare two alternatives, A and B, on the basis of a present worth evaluation using i = 10% per year and a study period of 8 years. Alternative A B First cost, $ -15,000 -28,000 Annual operating cost, $/year -6,000 -9,000 Overhaul in year 4, $ -1500 -2000 Salvage value, $ 3,000 5,000 Life, years 4 8