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The alternatives shown are to be compared on the basis of a perpetual (i.e., forever) equivalent annual worth. At an interest tale of 10% per
The alternatives shown are to be compared on the basis of a perpetual (i.e., forever) equivalent annual worth. At an interest tale of 10% per year, the equation that represents the perpetual AW of XI is: a)AW_x1 = -50,000(0, 10) - 10,000 + 13,000 (0.10) b) AW_x1 = -50,000(0.10) - 10,000 + 13,000(A/F, 10%, 3) c) AW_x1 -50,000(0.10) - 10,000 - 37, OOO(P/F, 10%3)(0.10) + 13.000(0.10) d) AW_x1 = -50,000(A/P, 10%, 3) - 10,000 + 13.000(A/F, 10%.3) In evaluating the following costs on the basis of a rate of return analysis, the correct equation to use is: a) 0 = -40,000 + 13,000(P/A, i, 3) + 5000(P/F, I, 3) b) 0 = - 40,000(A/P, i, 3) + 13,000 + 5000(A/F, i, 3) c) 0 = -40,000(F/A, i, 3) + 13,000(F/A, i, 3) + 5000 d) Any of the above
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