Alternative (B) Alternative(A) -100,000 st Cost -200,000 10,000 20,000 costlyear 20,000 age value 30,000 Life 4. 3

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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In comparing alternatives A and B by the present worth method, the value of n that must be sed in
10,000( P/A, %i , n) for alternative A is:
Alternative(A)
Alternative (B)
-200,000
20,000
First Cost
-100,000
M&O cost/year
10,000
Salvage value
20,000
30,000
Life
4.
3
OA 8
оВ. 4
ос 12
O D. 16
Transcribed Image Text:In comparing alternatives A and B by the present worth method, the value of n that must be sed in 10,000( P/A, %i , n) for alternative A is: Alternative(A) Alternative (B) -200,000 20,000 First Cost -100,000 M&O cost/year 10,000 Salvage value 20,000 30,000 Life 4. 3 OA 8 оВ. 4 ос 12 O D. 16
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