Using Net Present Worth Analysis which alternative is best? Use an interest rate ot 8%. Alternative Initial Cost Annual Benefit $2,100 $3,200 $1,550 $1,250 405 $ 1,290 Salvage Value $ Useful Life (years) 4 A is the best alternative B is the best alternative Choose either alternative O Choose neither alternative 2. %24

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter2: Using Financial Statements And Budgets
Section: Chapter Questions
Problem 5FPE
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Using Net Present Worth Analysis which alternative is best? Use an interest rate of
8%.
Alternative
Initial Cost
Annual Benefit
$2,100 $3,200
$1,550 $ 1,250
405 $ 1,290
Salvage Value
%24
Useful Life (years)
2
4
OA is the best alternative
B is the best alternative
Choose either alternative
O Choose neither alternative
Transcribed Image Text:Using Net Present Worth Analysis which alternative is best? Use an interest rate of 8%. Alternative Initial Cost Annual Benefit $2,100 $3,200 $1,550 $ 1,250 405 $ 1,290 Salvage Value %24 Useful Life (years) 2 4 OA is the best alternative B is the best alternative Choose either alternative O Choose neither alternative
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