Business, 24.03.2021 22:30 bluenblonderw

The following data is available for three different alternatives. Assume an interest rate of 2% per year, compounded annually. Alternative A Alternative B Alternative C
Initial Cost 6,000 7,200 12,000
Annual Benefit 1,450 2,339 5,680
Useful Life (yrs) infinite 16 8
Alternatives B and C are replaced at the end of their useful lives with identical replacements. Using present worth analysis, find the best alternative.
A. Choose Alternative A because it lasts the longest
B. Choose Alternative A because its net present worth is postive
C. Choose Alterntive C because it has the highest annual benefit
D. Choose Alternative C because its net present worth is $111,658.17 more than its nearest competitor

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:30, danthehero56

Northington, inc. is preparing the company's statement of cash flows for the fiscal year just ended. using the following information, determine the amount of cash flows from operating activities using the indirect method: net income$182,000gain on the sale of equipment12,300proceeds from the sale of equipment92,300depreciation expense—equipment50,000payment of bonds at maturity100,000purchase of land200,000issuance of common stock300,000increase in merchandise inventory35,400decrease in accounts receivable28,800increase in accounts payable23,700payment of cash dividends32,000 $189,400.$332,200.$236,800.$261,400 .$186,800.

Answers: 2

continue

Business, 22.06.2019 07:00, glizbethh00

What is the state tax rate for a resident of arizona whose annual taxable income is $18,000?

Answers: 1

continue

Business, 22.06.2019 17:30, katy9091

Danielle enjoys working as a certified public accountant (cpa) and assisting small businesses and individuals with managing their finances and taxes. which general area of accounting is her specialty? danielle specialized in

Answers: 1

continue

Business, 22.06.2019 22:50, maria241432

For 2016, gourmet kitchen products reported $22 million of sales and $19 million of operating costs (including depreciation). the company has $15 million of total invested capital. its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was 36%. what was the firm’s economic value added (eva), that is, how much value did management add to stockholders’ wealth during 2016?

Answers: 1

continue

You know the right answer?

The following data is available for three different alternatives. Assume an interest rate of 2% per...