What is the Present Worth Value for the second alternative if you are going to alternatives on a present worth basis with the MARR as 12%? assess the 2

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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What is the Present Worth Value for the second alternative if you are going to
assess the 2 alternatives on a present worth basis with the MARR as 12%?
Alternative 1
Alternative 2
-40,000
-65,000
First cost, $
Annual cost, $ per year
-20,000
-15,000
Salvage value, $
10,000
25,000
Life, years
3
4
-$94,667.50
O -$102,579.50
O -$193,068.50
O -$257,873.50
Transcribed Image Text:What is the Present Worth Value for the second alternative if you are going to assess the 2 alternatives on a present worth basis with the MARR as 12%? Alternative 1 Alternative 2 -40,000 -65,000 First cost, $ Annual cost, $ per year -20,000 -15,000 Salvage value, $ 10,000 25,000 Life, years 3 4 -$94,667.50 O -$102,579.50 O -$193,068.50 O -$257,873.50
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