Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 9% per year and a study period of 10 years. Alternative D First Cost $-38,000 $-23,000 AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years $-10,000 $-10,000 $-100 $-400 $5,000 $100 10 The present worth of alternative C is $ and that of alternative D is $ Alternative D v offers the lower present worth.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 9% per year and a study period of
10 years.
Alternative
D
First Cost
$-38,000
$-23,000
AOC, per Year
Annual Increase in Operating
Cost, per Year
Salvage Value
Life, Years
$-10,000
$-10,000
$-100
$-400
$5,000
$100
10
The present worth of alternative C is $
and that of alternative D is $
Alternative D
v offers the lower present worth.
Transcribed Image Text:Compare the alternatives C and D on the basis of a present worth analysis using an interest rate of 9% per year and a study period of 10 years. Alternative D First Cost $-38,000 $-23,000 AOC, per Year Annual Increase in Operating Cost, per Year Salvage Value Life, Years $-10,000 $-10,000 $-100 $-400 $5,000 $100 10 The present worth of alternative C is $ and that of alternative D is $ Alternative D v offers the lower present worth.
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