Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

for the cash flow below use an annual worth comparison to determine which altern

ID: 1180569 • Letter: F

Question

for the cash flow below use an annual worth comparison to determine which alternative is best at an interest rate of 1% per month


X First Cost= -90000 M & O costs, $/month = -30000 Overhaul every 10 years, $ (nothing) salvage value, $ = 7000 life, years = 3
Y First Cost= -400000 M & O costs, $/month = -20000 Overhaul every 10 years, $ (nothing) salvage value, $ = 25000 life, years = 10
Z First Cost= -900000 M & O costs, $/month = -13000 Overhaul every 10 years, $ 80000 salvage value, $ = 200000 life, years = infiniti
X First Cost= -90000 M & O costs, $/month = -30000 Overhaul every 10 years, $ (nothing) salvage value, $ = 7000 life, years = 3
Y First Cost= -400000 M & O costs, $/month = -20000 Overhaul every 10 years, $ (nothing) salvage value, $ = 25000 life, years = 10 First Cost= -400000 M & O costs, $/month = -20000 Overhaul every 10 years, $ (nothing) salvage value, $ = 25000 life, years = 10
Z First Cost= -900000 M & O costs, $/month = -13000 Overhaul every 10 years, $ 80000 salvage value, $ = 200000 life, years = infiniti First Cost= -900000 M & O costs, $/month = -13000 Overhaul every 10 years, $ 80000 salvage value, $ = 200000 life, years = infiniti

Explanation / Answer

Y First Cost= -400000 M & O costs, $/month = -20000 Overhaul every 10 years, $ (nothing) salvage value, $ = 25000 life, years = 10 First Cost= -400000 M & O costs, $/month = -20000 Overhaul every 10 years, $ (nothing) salvage value, $ = 25000 life, years = 10