Determine the alternative that is economically best

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For the cash flows shown, use an annual worth comparison and an interest rate of 10% per year.

Determine the alternative that is economically best.

Determine the first cost required for each of the two alternaqtives not selected in (a) so that all alternatioves are equally acceptable.

First Cost x= -90,000 y=-400,000   z= -650,000

Annual Cost, $ per year    x= -40,000 y=-20,000 z=-13,000

Overhaul Every 10 years, $   x= --- y= --- z= -80,000

Salvage value, $ x= 7,000 y= 25,000 z= 200,000

Life, years   x= 3 y= 10 z= infinity

Reference no: EM131007361

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