Can you please help me with this question and please show your work (typing) Que
ID: 2565665 • Letter: C
Question
Can you please help me with this question and please show your work (typing)
Question 3. Financial data related to three different alternatives are provided in the table below assume that alternatives are replaced at the end of their useful lives. MARR =8%
Data
P
R
5
Initial cost
$5,000
$1,000
$2,500
Uniform Annual Benefits
$650
$0
$350
Salvage Value
$5,000
$1,760
$2,000
Useful Life in Years
20
5
10
a. Find the EUAC alternative P
b. Find the EUAB alternative R
Data
P
R
5
Initial cost
$5,000
$1,000
$2,500
Uniform Annual Benefits
$650
$0
$350
Salvage Value
$5,000
$1,760
$2,000
Useful Life in Years
20
5
10
Explanation / Answer
a. EUAC of alternative P
Initial Cost (P) - $5000
Useful life (n) - 20
MARR (I) - 8%
Salvage Value - $5000
EUAC = 5000 (A/P, 8%, 20) - 5000 (A/F,8%,20)
= 400
b. EUAB of alternative R
Since the benefit per year is 0. EUAB will be 0 for alternative R.
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