1. Determine the better of the two alternatives using “Net Present Worth" analysis. Use an MARR of 10%. Initial Cost Annual Benefit Salvage Value Proj. X Proj. Y $12,500 $6,800 $5,000 $8,900 $2,000 $8,900 3 Years Service Life 2 Years

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 9EA: If you invest $12,000 today, how much will you have in (for further Instructions on future value in...
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1. Determine the better of the two alternatives using “Net Present Worth" analysis. Use an
MARR of 10%.
Initial Cost
Annual Benefit
Salvage Value
Proj. X Proj. Y
$12,500
$6,800
$5,000
$8,900
$2,000
$8,900
3 Years
Service Life
2 Years
Transcribed Image Text:1. Determine the better of the two alternatives using “Net Present Worth" analysis. Use an MARR of 10%. Initial Cost Annual Benefit Salvage Value Proj. X Proj. Y $12,500 $6,800 $5,000 $8,900 $2,000 $8,900 3 Years Service Life 2 Years
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