Problem 2 The following data is available for three different alternatives with identical replacement and...
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Accounting
Problem 2 The following data is available for three different alternatives with identical replacement and the end of their useful lives. Conduct present worth and annual cash flows analysis to select and recommend the best alternative. Data Alternative Initial Cost Uniform Annual Benefits Useful Life in years Interest Rate $1,000 1,500 2,000 $200 $276 $655 10 12% ECONOMIC ANALYSIS Draw cash flows diagram for alternative A, B and C Using the present worth method, determine the net present worth (NPW-PWB-PWC) of alternative A, B and C and recommend the most economical alternative. Using the equivalent uniform annual cash flows method, determine the equivalent uniform annual worth (EUAW EUAB-EUAC) of alternative A, B and C; and select the most economical alternative. A. B. C
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