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In: Economics

given the following data. use present worth analysis to find the best alternative, A, B, or...

given the following data. use present worth analysis to find the best alternative, A, B, or C. Use an analysis period of 12 years and 15% interest.

A B C

Initial cost $10,000 15,000 $12,000

Annual Benefit 6,000 10,000 5,000

Salvage benefir 1,000 -2,000 3,000

Useful life 2 years 3 years 4 years

* Use an analysis period of 12 years and 15% interest.

Solutions

Expert Solution

Alternative B is to be selected of having highest revenues.

Rahul Sunny answered 2 years ago
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