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.
First Cost x= -90,000 y=-400,000 z= -650,000
Annual Cost, $ per year x= -40,000 y=-20,000 z=-13,000
Overhaul Every 10 years, $ x= --- y= --- z= -80,000
Salvage value, $ x= 7,000 y= 25,000 z= 200,000
Life, years x= 3 y= 10 z= infinity