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7nadin3 [17]
3 years ago
12

You must choose between four pieces of comparable equipment based on the cash flows given below. All four pieces have a life of

8 years.
Parameter A B C D
First cost $25,000 $35,000 $20,000 $40,000
Annual costs $8,000 $6,000 $9,000 $5,000
Salvage value $2,500 $3,500 $2,000 $4,000
The discount rate is 12%. Ignore taxes. The most preferable top two projects and the difference between their present worth values are most nearly:_____.
A. A and C, $234.
B. B and D, $170.
C. A and C, $170.
D. B and D, $234.
Business
1 answer:
Sergeu [11.5K]3 years ago
4 0

Answer:

You must choose between four pieces of comparable equipment based on the cash flows.

Explanation:

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