A company needs a new mechanical device. Compute the present worth for these mutually exclusive alternatives. Identify which you would recommend and why for given i-10% per year. The company uses 8-year planning horizon. Initial Cost Annual Costs Salvage Value Life Alternative A $4000 $500 $1000 4 years Alternative B $5000 $600 $500 8 year

Advanced Engineering Mathematics
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A company needs a new mechanical device. Compute the present worth for these
mutually exclusive alternatives. Identify which you would recommend and why for
given i-10% per year. The company uses 8-year planning horizon.
Initial Cost
Annual Costs
Salvage Value
Life
Alternative A
$4000
$500
$1000
4 years
Alternative B
$5000
$600
$500
8 year:
Transcribed Image Text:A company needs a new mechanical device. Compute the present worth for these mutually exclusive alternatives. Identify which you would recommend and why for given i-10% per year. The company uses 8-year planning horizon. Initial Cost Annual Costs Salvage Value Life Alternative A $4000 $500 $1000 4 years Alternative B $5000 $600 $500 8 year:
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