Consider following cash flows for alternatives X and Y at an interest rate of 10% per year. Machine Initial cost, $ AOC, $/year Annual revenue, S/year Salvage value, $ Life, years X Y -146,000 -220,000 -15,000 -10,000 80,000 75,000 10,000 25,000 3 6 The capitalized cost of machine Y is closest to: $17,726 $86,590 $177,260 $207,720

Consider following cash flows for alternatives X and Y at an interest rate of 10% per year. Machine Initial cost, $ AOC, $/year Annual revenue, S/year Salvage value, $ Life, years X Y -146,000 -220,000 -15,000 -10,000 80,000 75,000 10,000 25,000 3 6 The capitalized cost of machine Y is closest to: $17,726 $86,590 $177,260 $207,720

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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