Show the calculations clearly to arrive at an answer for the following problems: a) The annual worth value for a defende
Posted: Mon Apr 18, 2022 9:22 am
Show the calculations clearly to arrive at an answer for the following problems: a) The annual worth value for a defender and a challenger are as shown below: Year AW of Defender, $ AW of Challenger, $ 1 2 3 -24,000 -25,500 -26,900 -27,000 -28,000 -31,000 -28,000 -25,000 -25,900 -27,500 The defender should be replaced: i) Now ii) 1 year from now iii) 2 years from now iv) 3 years from now Por b) An alternative has the following cash flows: Benefits Disbenefits Costs $50,000 per year = $27,000 per year = $25,000 per year The B/C ratio is closer to: i) 0.92 ii) 0.96 iii) 1.04 iv) 2.00