For the cash flows shown, use an annual worth comparison and an interest rate of 10% per year.
Determine the alternative that is economically best.
Determine the first cost required for each of the two alternaqtives not selected in (a) so that all alternatioves are equally acceptable.
X Y Z
First Cost, mce_markernbsp; -90,000 -400,000 -650,000
Annual Cost, $/yr -40,000 -20,000 -13,000
Overhaul $ ever 10 yrs, --------- ---------- -80,000
Salvage Value, mce_markernbsp; 7,000 25,000 200,000
Life, years 3 10 Infinity