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-The alternatives shown are to be compared on the basis of a perpetual (i.e., forever) quivalent annual worth. At an interest rate of 10% per
-The alternatives shown are to be compared on the basis of a perpetual (i.e., forever) quivalent annual worth. At an interest rate of 10% per year, the equation that represents he perpetual AW of X1 is: X1 Y1 First cost, $ -50,000 -90,000 Annual cost, $ per year -10,000 -4,000 Salvage value, $ 13,000 15,000 Life, years 3 O a.AW. = -50,000(0.10) - 10,000 + 13,000(0.10) b.AW.. = -50,000(0.10) - 10,000 + 13,000( A/F , 10%,3) CAWn = -50,000( A/P , 10%,3) - 10,000 + 13,000( A/F , 10%,3) d.AW, = -50,000(0.10) - 10,000 + 37,000( A/F , 10%,3)
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