Alternative X has a first cost of $30,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alternative Y will cost $45.000 at nO with an operating cost of $4,000 per year after that and a salvage value of $7,000 after 5 years. At an MARR of 12% per year, what is the present worth for alternative X? $49,606 $58,777 $59,606 -$32,443

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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Author:MOYER
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Chapter10: Capital Budgeting: Decision Criteria And Real Option
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Alternative X has a first cost of $30,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alternative Y will cost $45,000 at nO with an operating
cost of $4,000 per year after that and a salvage value of $7,000 after 5 years. At an MARR of 12% per year, what is the present worth far alternative X2
$49,606
$58,777
$59,606
-$32,443
Transcribed Image Text:Alternative X has a first cost of $30,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alternative Y will cost $45,000 at nO with an operating cost of $4,000 per year after that and a salvage value of $7,000 after 5 years. At an MARR of 12% per year, what is the present worth far alternative X2 $49,606 $58,777 $59,606 -$32,443
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