Compare the following alternatives on the basis of their capitalized costs at i = 3% per year and select the bestalternative.AlternativeAlternative 1Alternative 2First Cost- $214353- $761379AOC, per year- $23334- $14120Salvage Value$55728$175008Life, years8Select one:a. Alternative 2 is selected, CC of selected alternative is $- 1232046b. Alternative 1 is selected, CC of selected alternative is $-1232046C. Alternative 1 is selected, CC of selected alternative is $-1218655d. Alternative 2 is selected, CC of selected alternative is $–1218655e. Alternative 1 is selected, CC of selected alternative is $-1276483

Alternative 1: First Cost = -$214,353 AOC, per year = -$23,334 Salvage Value = $55,728 Life, Years…

Compare the following alternatives on the basis of their capitalized costs at i = 3% per year and select the bes alternative. Alternative Alternative 1 Alternative 2 First Cost - $214353 - $761379 AOC, per year - $23334 - $14120 Salvage Value $55728 $175008 Life, years 8 00

Compare the following alternatives on the basis of their capitalized costs at i = 3% per year and select the bes alternative. Alternative Alternative 1 Alternative 2 First Cost - $214353 - $761379 AOC, per year - $23334 - $14120 Salvage Value $55728 $175008 Life, years 8 00

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

Section: Chapter Questions

Problem 1PS

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Question

Compare the following alternatives on the basis of their capitalized costs at i = 3% per year and select the best
alternative.
Alternative
Alternative 1
Alternative 2
First Cost
- $214353
- $761379
AOC, per year
- $23334
- $14120
Salvage Value
$55728
$175008
Life, years
8
Select one:
a. Alternative 2 is selected, CC of selected alternative is $- 1232046
b. Alternative 1 is selected, CC of selected alternative is $-1232046
C. Alternative 1 is selected, CC of selected alternative is $-1218655
d. Alternative 2 is selected, CC of selected alternative is $–1218655
e. Alternative 1 is selected, CC of selected alternative is $-1276483

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