question archive Q2) for the following two alternatives, solve questions 2
Q2) for the following two alternatives, solve questions 2
Subject:EconomicsPrice: Bought3
Q2) for the following two alternatives, solve questions 2.1 through 2.5, assume i = 12% and mutually exclusive Alternatives. Initial cost Annual cost Future cost Alternative 1 100,000 40,000 4,000 at the end of the second year 2,500 at the end of the fourth year 35,000 25,000 4 Alternative 2 120,000 32,000 5,000 at the end of the third year 1,500 at the end of the sixth year 29,000 27,000 8 Annual income Salvage income n 2.1. Choose the most economical alternative based on present worth analysis. 2.2. Choose the most economical alternative based on present worth analysis, assuming n = oo for the econd alternative. 3. Choose the most economical alternative based on present worth analysis, assuming n = oo for both ternatives.
