TABLE 8.1 Competing Alternatives with Three Estimates for Selected Parameters First Salvage Value, $ Life Cost, $ АОС, $ п, Strategy Years Alternative A P - 20,000 -11,000 3 Estimates ML - 20,000...


determine the most economic alternative using AW analysis at 12% per year. Give an explanation and draw the results.


TABLE 8.1 Competing Alternatives with Three Estimates for<br>Selected Parameters<br>First<br>Salvage<br>Value,<br>$<br>Life<br>Cost,<br>$<br>АОС,<br>$<br>п,<br>Strategy<br>Years<br>Alternative A<br>P<br>- 20,000<br>-11,000<br>3<br>Estimates ML<br>- 20,000<br>-9,000<br>5<br>- 20,000<br>-5,000<br>8<br>Alternative B<br>P<br>- 15,000<br>500<br>-4,000<br>Estimates ML<br>-15,000<br>1,000<br>-3,500<br>4<br>-15,000<br>2,000<br>-2,000<br>7<br>Alternative C<br>P<br>- 30,000<br>3,000<br>-8,000<br>3<br>Estimates ML<br>- 30,000<br>3,000<br>-7,000<br>7<br>- 30,000<br>3,000<br>-3,500<br>P =<br>pessimistic; ML = most likely; O = optimistic.<br>

Extracted text: TABLE 8.1 Competing Alternatives with Three Estimates for Selected Parameters First Salvage Value, $ Life Cost, $ АОС, $ п, Strategy Years Alternative A P - 20,000 -11,000 3 Estimates ML - 20,000 -9,000 5 - 20,000 -5,000 8 Alternative B P - 15,000 500 -4,000 Estimates ML -15,000 1,000 -3,500 4 -15,000 2,000 -2,000 7 Alternative C P - 30,000 3,000 -8,000 3 Estimates ML - 30,000 3,000 -7,000 7 - 30,000 3,000 -3,500 P = pessimistic; ML = most likely; O = optimistic.

Jun 10, 2022
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