Years 1 2 3 4 5 6 n Defender -3200 -2,500 -2,650 -3,300 1. $17,200 Annual Cost -Annual Tax for defender 0.892857083 2. $18,400 3. $21,200 4. $16,800 1.690051017 2.401831268 3.037349346 3.6047762 4.111407323 PW= @12 -2857.142667 -5800 -4,225 -6,365 -10,023 0 0 Challenger -23,470 -4230 -3200 -3500 -4,000 -5,500 Annual Cost-Annual Tax for defender 0.892857142 1.690051017 2.401831268 3.037349346 3.6047762 4.111407323 PW @15% -5178.57142 -7148.9158 -7685.86006 -10630.7227 -14419.1048 1. For this defender/challenger study, what is the (lowest) Annual Equivalent Cost of the best feasible alternative with formula: -22612.7403 -67675.9151

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Problem 1QTC
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Years
1
2
3
4
5
6
n
Defender
-3200
-2,500
-2,650
-3,300
Annual Cost -Annual Tax
for defender
0.892857083
1.690051017
2.401831268
3.037349346
3.6047762
4.111407323
PW= @12 Challenger
-2857.142667 -5800
-4,225
-6,365
-10,023
0
0
-23,470
-4230
-3200
-3500
-4,000
-5,500
Annual Cost-Annual Tax
for defender
0.892857142
1.690051017
2.401831268
3.037349346
3.6047762
4.111407323
PW @15%
-5178.57142
-7148.9158
-7685.86006
-10630.7227
-14419.1048
-22612.7403
-67675.9151
1. For this defender/challenger study, what is the (lowest) Annual Equivalent Cost of the best feasible alternative with
formula:
1. $17,200
2. $18,400
3. $21,200
4. $16,800
Transcribed Image Text:Years 1 2 3 4 5 6 n Defender -3200 -2,500 -2,650 -3,300 Annual Cost -Annual Tax for defender 0.892857083 1.690051017 2.401831268 3.037349346 3.6047762 4.111407323 PW= @12 Challenger -2857.142667 -5800 -4,225 -6,365 -10,023 0 0 -23,470 -4230 -3200 -3500 -4,000 -5,500 Annual Cost-Annual Tax for defender 0.892857142 1.690051017 2.401831268 3.037349346 3.6047762 4.111407323 PW @15% -5178.57142 -7148.9158 -7685.86006 -10630.7227 -14419.1048 -22612.7403 -67675.9151 1. For this defender/challenger study, what is the (lowest) Annual Equivalent Cost of the best feasible alternative with formula: 1. $17,200 2. $18,400 3. $21,200 4. $16,800
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