Compare the alternatives shown below on the basis of annual worth using an interest rate of 8% per year compounded quarterly.                                                   Alternative A           Alternative B First Cost,                                     $ 2,340,000             $1,211,000 Annual Operating Cost, $/yr          $276,000               $311,600 Salvage value,                                 $712,000                $115,000 Life, years                                                       7                             5

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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  1. Compare the alternatives shown below on the basis of annual worth using an interest rate of 8% per year compounded quarterly.

                                                  Alternative A           Alternative B

First Cost,                                     $ 2,340,000             $1,211,000

Annual Operating Cost, $/yr          $276,000               $311,600

Salvage value,                                 $712,000                $115,000

Life, years                                                       7                             5

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