Financial data related to three different alternatives are p

Financial data related to three different alternatives are provided in the table below. Assume that useful lives are all 10 years. Annual interest rate-8% Data Initial Cost Annual additional cost $100 Uniform Annual Benefits $650 5,000 SI,000 52,500 25 200 150 500 12. EUAW of alternative \"P\" 13. EUA W of alternative \"Q\" 14. EUA W of alternative \"R\" 15. Which alternative is the best choice? What does an apartment complex nee l6

Solution

12)

EUAW = EUAB - EUAC

EUAB = $ 650

EUAC = $ 5000 ( A/P, 8% , 10 years) + $ 100

EUAC = $ 5000 * 0.149029 + $ 100

EUAC = $ 845.145

EUAW = $ 650 -  $ 845.145

EUAW P= - $ 195.15

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13)

EUAW = EUAB - EUAC

EUAB = $ 200

EUAC = $ 1000 ( A/P, 8% , 10 years) + $ 25

EUAC = $ 1000 * 0.149029 + $ 25

EUAC = $ 174.029

EUAW = $ 200 -  $ 174.029

EUAW Q = $ 25.97

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14)

EUAW = EUAB - EUAC

EUAB = $ 500

EUAC = $ 2500 ( A/P, 8% , 10 years) + $ 150

EUAC = $ 2500 * 0.149029 + $ 150

EUAC = $ 522.57

EUAW = $ 500 -  $ 522.57

EUAW R = - $ 22.57

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Alternative Q is the best choice because it has the hightest EUAW.