In: Finance
Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 15% per year and a study period of 10 years.
Alternative | C | D |
First Cost | $-50,000 | $-29,000 |
AOC, per Year | $-7,000 | $-4,500 |
Annual Increase in Operating Cost, per Year | $-700 | $-1,000 |
Salvage Value | $11,000 | $700 |
Life, Years | 10 | 5 |
The present worth of alternative C is $ and that of alternative D is $ .