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The following problem statement applies to Problem No. 1, 2 and 3: Use Present Worth Analysis, to calcualte the present value at Time 0 of
The following problem statement applies to Problem No. 1, 2 and 3: Use Present Worth Analysis, to calcualte the present value at Time 0 of Alternative A, B and C, over LCM years with the information below (All PV's shown in the answers are negative numbers): A B First Cost (-) 5,000 8,000 11,000 Cost per year (-) 4,200 3,500 3,200 Salvage Value (+) 1,000 2,000 3,000 Life (years) 3 4 6 Annual Interet Rate 8% Problem No. 1 Present Value for Alternative A is closest to which of the answers below: a. 42,776 b. 43,951 c. 44,776 d. 45,313 Problem No. 2 Present Value for Alternative B is closest to which of the answers below: a. 43,123 b. 42,350 c. 44,411 d. 41,234 Problem No. 3 Present Value for Alternative C is closest to which of the answers below: a. 41,180 b. 39443 c. 38,965 d, 40,334
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