Business, 10.03.2020 07:39 kimberlyhansen92
You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manufacturing high-pressure hydraulic hoses. The parameters associated with each alternative have been estimated. Which one should be selected on the basis of a present worth comparison at an interest rate of 15% per year? Why is yours the correct choice?
Alternative X Y
First Cost $-45,000 $-58,000
Maintenance cost, per Year $-8000 $-4000
Salvage Value $2,000 $12,000
Life 5 years 5 years
The present worth of alternative X is( $ )and that of alternative Y is( $ ).
Answers: 3
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You have been asked to evaluate two alternatives, X and Y, that may increase plant capacity for manu...
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