Two alternative structures are being considered for a specific service. Compare the present worth of the cost of 24 years of service, using an interest of 5%, when neither structure has a realizable salvage value. The pertinent data are as follows: Structure I $4,500 12 years $1,000 Structure II $10,000 24 years $720 Alternative First cost Estimated life Annual disbursements

Two alternative structures are being considered for a specific service. Compare the present worth of the cost of 24 years of service, using an interest of 5%, when neither structure has a realizable salvage value. The pertinent data are as follows: Structure I $4,500 12 years $1,000 Structure II $10,000 24 years $720 Alternative First cost Estimated life Annual disbursements

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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