Complete the following analysis of cost alternatives and select the preferred al

Question

Complete the following analysis of cost alternatives and select the preferred alternative. The study period is 10 years and the MARR= 10% per year Do Nothing is not an option Capital investment Annual costs Market value at EOY 10 FW (10%) 260 900 - $41,890 $14,900 $16,100 $12,500 $18,100 100 2,000 ??? - $46,540 310 1,300 - $45,400 550 1,800 Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year The FW of the alternative C is (Round to the nearest dollar.) Select the preferred alternative. Choose the correct answer below A. Alternative C B. Alternative A C. Alternative D OD. Alternative B

Explanation / Answer

Alternate A is Preferred Because of Lower FW Cost

Fv of Capital Investment 12500*(1+.10)^10 32421.78 Future Worth of Annual Cost =550*15.9734 8765.57 Maket Value at EOY 10 1800 The FW of Alternate C is $ -42987

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