Determine the better of the two alternatives using the present worth analysis. Use an interest rate of 10%.
$$\begin{array} { | l | l | l | }
\hline & \text { Alt. X } & \text { Alt. Y } \
\hline \text { Iritial cost } & \$ 12,500 & \$ 8,900 \
\hline \text { Arrual berefit } & \$ 6,800 & \$ 2,000 \
\hline \text { Salvage value } & \$ 5,000 & \$ 8,900 \
\hline \text { Life in years } & 2 \text { years } & 3 \text { Years } \
\hline \text { MARR } & 10 \% & \
\hline
\end{array}$$

Question

Determine the better of the two alternatives using the present worth analysis. Use an interest rate of 10%.
 $$\begin{array} { | l | l | l | } 
\hline & \text { Alt. X } & \text { Alt. Y } \
\hline \text { Iritial cost } & \$ 12,500 & \$ 8,900 \
\hline \text { Arrual berefit } & \$ 6,800 & \$ 2,000 \
\hline \text { Salvage value } & \$ 5,000 & \$ 8,900 \
\hline \text { Life in years } & 2 \text { years } & 3 \text { Years } \
\hline \text { MARR } & 10 \% & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Determine the better of the two alternatives using the present worth analysis. Use an interest rate of 10%.
 $$\begin{array} { | l | l | l | } 
\hline & \text { Alt. X } & \text { Alt. Y } \
\hline \text { Iritial cost } & \$ 12,500 & \$ 8,900 \
\hline \text { Arrual berefit } & \$ 6,800 & \$ 2,000 \
\hline \text { Salvage value } & \$ 5,000 & \$ 8,900 \
\hline \text { Life in years } & 2 \text { years } & 3 \text { Years } \
\hline \text { MARR } & 10 \% & \
\hline
\end{array}$$

Determine the Better of the Two Alternatives Using the Present