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Use the present worth analysis method to determine which alternative (A or B) one should choose. Assume that the interest i = 8% per year.
Use the present worth analysis method to determine which alternative (A or B) one should choose. Assume that the interest i = 8% per year. (A) Compute the net present worth of alternative A. (B) Compute the net present worth of alternative (B). (C) Which is the better option?
D Question 1 3 pt Print Name Use the present worth analysis method to determine which alternative (A or B) one should choose. Assume that the interest i-8% per year. First cost $5,500 $11,000 Annual benefit $1.850 $2.100 Salvage value $500 $1,000 Useful life, in years 4 (a (3 points) Compute the net present worth of alternative A. 1508 1814Step by Step Solution
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