contestada

Two alternatives are considered. Alternative A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost will be $30,000 per year. Alternative B will have a first cost of $120,000, an operating cost of $8000 per year, and a $40,000 salvage value after its 3-year life. At an interest rate of 12% per year, using present worth analysis, which of the following is correct? (PWA / PWB / right Alternative) B/110,742-$/111,377-$ O A/110,742-$/141,377-$ B/110,742-$/141,377-$ A/120,742-$/111,377-$ O