3.) Economic estimates for two alternatives are follows: A в FC 200,000 300,000 Annual Op. Cost 32,000 24,000 Labor Cost 50,000 32,000 3% 4% 10 Insurance 3% Payroll Tax Life 4% 10 If the MARR = 15%, compare the two alternatives. For alternatives with the same lives, the study period will lives of the altematives. Using PWC method, determine the PWC of cost for each alternative.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...
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Need a solution. Our subject is Engineering Economics and the lesson is economic study method
3.) Economic estimates for two alternatives are follows:
A
B
FC
200,000
32,000
300,000
24,000
Annual Op. Cost
Labor Cost
50,000
32,000
Insurance
3%
3%
Payroll Tax
Life
4%
4%
10
10
If the MARR = 15%, compare the two alternatives.
For alternatives with the same lives, the study period will lives of the altermatives. Using PWc
method, determine the PWC of cost for each alternative.
Transcribed Image Text:3.) Economic estimates for two alternatives are follows: A B FC 200,000 32,000 300,000 24,000 Annual Op. Cost Labor Cost 50,000 32,000 Insurance 3% 3% Payroll Tax Life 4% 4% 10 10 If the MARR = 15%, compare the two alternatives. For alternatives with the same lives, the study period will lives of the altermatives. Using PWc method, determine the PWC of cost for each alternative.
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