1. Compare the following alternatives on the basis of Present worth Analysis at an interest rate of 4% per year. (hand calculation Inorganic Based Feedstock Petroleum Based Feedstock First Cost, $ Annual Operating cost, $ /year Annual Revenues, $/year -2,420,000 -50,000 310,000 -1,520,000 -70,000 294,000 Salvage Value, $ Life years 61,000 38,000 6. 4. You should consider Least Common Multiple of (6 and 4) which is 12 years in your analysis instead of 4 or 6 years!

1. Compare the following alternatives on the basis of Present worth Analysis at an interest rate of 4% per year. (hand calculation Inorganic Based Feedstock Petroleum Based Feedstock First Cost, $ Annual Operating cost, $ /year Annual Revenues, $/year -2,420,000 -50,000 310,000 -1,520,000 -70,000 294,000 Salvage Value, $ Life years 61,000 38,000 6. 4. You should consider Least Common Multiple of (6 and 4) which is 12 years in your analysis instead of 4 or 6 years!

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.1.1MBA

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