5.24 For the cash flows below, use an annual worthcomparison to determine which alternative is bestat an interest rate of 1% per month.First cost, $M&O costs, $/monthOverhaul every 10 years, $Salvage value, $Life, yearsX-90,000 -400,000-30,000-20,000-Y70003-25,00010Z-900,000-13,000-80,000200,0008

Cash flow refers to the movement of money into and out of a business or individual's finances over a…

comparison at an interest rate of 1% per month. to determine which alternative is best First cost, $ M&O costs, $/month Overhaul every 10 years, $ X Y -90,000 -400,000 -30,000 -20,000 7000 25 000 Z -900,000 -13,000 -80,000 200.000

comparison at an interest rate of 1% per month. to determine which alternative is best First cost, $ M&O costs, $/month Overhaul every 10 years, $ X Y -90,000 -400,000 -30,000 -20,000 7000 25 000 Z -900,000 -13,000 -80,000 200.000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5.24 For the cash flows below, use an annual worth
comparison to determine which alternative is best
at an interest rate of 1% per month.
First cost, $
M&O costs, $/month
Overhaul every 10 years, $
Salvage value, $
Life, years
X
-90,000 -400,000
-30,000
-20,000
-
Y
7000
3
-
25,000
10
Z
-900,000
-13,000
-80,000
200,000
8

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