Alternative X has a first cost of 22000 an annual operating cost of 4100 , and a salvage value of 6825 after 27 year. Alternative Y has a first cost of 23000 an annual operating cost of 4200 , and a salvage value of 16560 after 27 year. If MARR of 27% per year, approximately what is the PW of each alternative?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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Alternative X has a first cost of 22000 an
annual operating cost of 4100 , and a
salvage value of 6825 after 27 year.
Alternative Y has a first cost of 23000 an
annual operating cost of 4200 , and a
salvage value of 16560 after 27 year. If
MARR of 27% per year, approximately what
is the PW of each alternative?
Transcribed Image Text:Alternative X has a first cost of 22000 an annual operating cost of 4100 , and a salvage value of 6825 after 27 year. Alternative Y has a first cost of 23000 an annual operating cost of 4200 , and a salvage value of 16560 after 27 year. If MARR of 27% per year, approximately what is the PW of each alternative?
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