Problem 681 algorithmic Question Help For the following tabl

Problem 6-81 (algorithmic) Question Help For the following table, assume a MARR of 15% per year and a useful life for each alternative of eight years which equals atermatives from least capital investment to greatest capital investment is Z- Y-W X Complete the incremental analysis by Do nothing is not an option. ? Capital investment ? Annual cost savings ? Market value ? pw (15%) S250$400 90 50 20 70 100 97 20 300 Click the icon to view the interest and annuity table for discrete compounding when i-15% per year The PW of ? (W ? X) is S? (Round to the nearest dollar )

Solution

PW of ? (W ? X)

? Capital Investment = -600

? Annual Cost savings = 20

? Market Value = 300

Rate of interest = 15%, Study Period = 8 year

PW = -600 + 20 (4.4873) + 300 (0.3269)

PW = -600 + 90 + 98

PW =-412