Alternative First Cost (Investment Cost) Uniform Annual Benefit Useful Life A $ 5,000 $ 1,100 5 years B $10,200 $2,300 10 years a. The Net Present Worth of Alternative A is = $ Blank 1 b. The Net Present Worth of Alternative B is = $ Blank 2 c. Choose Alternative (Type only A or B) = Blank 3

Alternative First Cost (Investment Cost) Uniform Annual Benefit Useful Life A $ 5,000 $ 1,100 5 years B $10,200 $2,300 10 years a. The Net Present Worth of Alternative A is = $ Blank 1 b. The Net Present Worth of Alternative B is = $ Blank 2 c. Choose Alternative (Type only A or B) = Blank 3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Solve the following show solutions

Determine which option, if any, should be chosen
based on net present worth using a 8% interest
rate. Use Repeatability
Method.
Alternative
First Cost (Investment Cost)
Uniform Annual Benefit
Useful Life
a. The Net Present Worth of Alternative A is = $
Blank 1
b. The Net Present Worth of Alternative B is $
Blank 2
c. Choose Alternative (Type only A or B) = Blank 3
Blank 1
A
$ 5,000
$ 1,100
5 years
Note: Show final answer in WHOLE Number. No need to write the
Unit of Measure. No need to put a comma.
Blank 2
Blank 3
Add your answer
B
$10,200
$2,300
10 years
Add your answer
Add your answer

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