Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron facility. Which alternative would be selected based the present worth, if the interest rate is 10% per year? Please note: The alternatives are mutually exclusive! Alternative First Cost, $ Operational & Maintenance Costs, $ -25,000 |-10,000 Salvage Value, $ Life, years a Alternative A, PW=-$250,349 A |-100,000 -140,000 20,000 30,000 12 4 h Alternative A, PW=-$355,931 Alternative B, PW = -$198,578 Alternative A, PW = -$120,968 d.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron facility. Which alternative would be selected based the present worth, if the interest rate is 10% per year?
Please note: The alternatives are mutually exclusive!
Alternative
A
B
First Cost, $
Operational & Maintenance Costs, $ -25,000 ||-10,000
Salvage Value, $
Life, years
|-100,000|-140,000
20,000 30,000
4
12
Alternative A, PW= -$250,349
а.
Alternative A, PW= -$355,931
Ob.
Alternative B, PW = -$198,578
C.
Alternative A, PW= -$120,968
Od.
Transcribed Image Text:Two alternatives are being considered for the upgrades to a detector at an X-ray synchrotron facility. Which alternative would be selected based the present worth, if the interest rate is 10% per year? Please note: The alternatives are mutually exclusive! Alternative A B First Cost, $ Operational & Maintenance Costs, $ -25,000 ||-10,000 Salvage Value, $ Life, years |-100,000|-140,000 20,000 30,000 4 12 Alternative A, PW= -$250,349 а. Alternative A, PW= -$355,931 Ob. Alternative B, PW = -$198,578 C. Alternative A, PW= -$120,968 Od.
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