year Initial cost P Annual M O year Refurbishment cost Trade

Last updated: 8/17/2023

year Initial cost P Annual M O year Refurbishment cost Trade in value S of P Life years A 15 000 6 000 0 20 4 B 20 000 9 000 2 000 every 4 years 40 12 5 Company X has two options A and B for the manufacture of switches The estimated cash flows for each option are given below Use an annual worth comparison to determine which option is preferable at an interest rate of 20 per year First cost Annual cort ar A 30 5 B 10 12