Three different alternatives shown in table below are being considered by Kal Te
ID: 1090665 • Letter: T
Question
Three different alternatives shown in table below are being considered by Kal Tech Engineering systems.
Assume that alternatives X and Z are replaced at the end of their lives.
Data
Alternative X
Alternative Y
Alternative Z
Initial Cost
$6,000
$1,000
$1,500
Uniform Annual Benefits
$810
$125
$ 230
Useful Life in Years
20
infinite
10
MARR
12%
The NPW of alternative "X" is ____________.
Data
Alternative X
Alternative Y
Alternative Z
Initial Cost
$6,000
$1,000
$1,500
Uniform Annual Benefits
$810
$125
$ 230
Useful Life in Years
20
infinite
10
MARR
12%
Explanation / Answer
NPW of X = -6000 + 810*(1-1/1.12^20)/12%= $50.25
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.