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You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with
You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 15% per year? Why is yours the correct choice? X $-45,000 Y $-65,000 Alternative First Cost Maintenance cost, per Year Salvage Value Life $-13000 $-3000 $2,000 5 years $3,000 5 years The present worth of alternative X is $ and that of alternative Y is $ Alternative (Click to select) v is selected by the company
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