6) What is the Equivalent Annual Cost (EAC) for each of the two options for which the annual cash flows are listed below? (Note: when calculating EAC, you should treat negative cash flows as positive...


6) What is the Equivalent Annual Cost (EAC) for each of the two options for which the annual<br>cash flows are listed below? (Note: when calculating EAC, you should treat negative cash<br>flows as positive values, and positive cash flows as negative values.) Use i=5%.<br>Year<br>Option 1<br>Option 2<br>-$25,000<br>-$50,000<br>1<br>-$3,000<br>-$7,000<br>-$7,000<br>-$7,000<br>2<br>-$3,000<br>3<br>-$6,000<br>4<br>-$6,000<br>-$8,000<br>-$6,000<br>-$8,000<br>-$8,000<br>-$9,000<br>-$9,000<br>-$9,000<br>-$9,000<br>-$9,000<br>8<br>-$9,000<br>9<br>-$9,000<br>10<br>$5,000<br>$9,000<br>

Extracted text: 6) What is the Equivalent Annual Cost (EAC) for each of the two options for which the annual cash flows are listed below? (Note: when calculating EAC, you should treat negative cash flows as positive values, and positive cash flows as negative values.) Use i=5%. Year Option 1 Option 2 -$25,000 -$50,000 1 -$3,000 -$7,000 -$7,000 -$7,000 2 -$3,000 3 -$6,000 4 -$6,000 -$8,000 -$6,000 -$8,000 -$8,000 -$9,000 -$9,000 -$9,000 -$9,000 -$9,000 8 -$9,000 9 -$9,000 10 $5,000 $9,000

Jun 10, 2022
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