Question 4 Determine which option, if any, should be chosen based on net present worth using a 8% interest rate. Use Repeatability Method. Alternative Fint Cost (investment Cost) $5,000 $10,200 Uniform Annual Beneft $1,100 $2,100

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Chapter1: Making Economics Decisions
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Question 4
Determine which option, if any, should be chosen
based on net present worth using a 8% interest
rate. Use Repeatability Method.
Alternative
First Cost (investment Cost)
$5,000
$10,200
Unitorm Annual Benefit
$1,100
$2,100
setul Lile
S years
10 years
a. The Net Present Worth of Alternative A is = $
Blank 1
b. The Net Present Worth of Alternative B is = $
Blank 2
c. Choose Alternative (Type only A or B) = Blank 3
Note: Show final answer in two decimal places. No need to write the
Unit of Measure. No need to put a comma.
Blank 1 Add your answer
Blank 2 Add your answer
Blank 3 Add your answer
Transcribed Image Text:Question 4 Determine which option, if any, should be chosen based on net present worth using a 8% interest rate. Use Repeatability Method. Alternative First Cost (investment Cost) $5,000 $10,200 Unitorm Annual Benefit $1,100 $2,100 setul Lile S years 10 years a. The Net Present Worth of Alternative A is = $ Blank 1 b. The Net Present Worth of Alternative B is = $ Blank 2 c. Choose Alternative (Type only A or B) = Blank 3 Note: Show final answer in two decimal places. No need to write the Unit of Measure. No need to put a comma. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer
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