Determine the Equivalent Uniform Annual Worth for both of the following alternatives, assuming an interest rate of 10%.
Show your work on your worksheet. Type in your answers rounded to the nearest $100 using the following format $XXXX
|
Data
|
A
|
B
|
|
First Cost
|
$4,000
|
$6,000
|
|
Annual Cost
|
$1,000
|
$500
|
|
Annual Benefit
|
$2,000
|
$2,200
|
|
Life, Years
|
4
|
10
|
|
Salvage Value
|
$3,000
|
$1,000
|
What is the EUAW for Option A?
What is the EUAW for option B?