Homework Answers
Ans: The FW of alternative C is - $59928
Ans: d ) Alternative C
Explanation:
F = $13000 ( F / P , i , n ) + $450 ( F / A , i , n ) - $1800
= $13000 ( F / P , 15% , 10 ) + $450 ( F / A , 15% , 10 ) - $1800
= $13000 ( 4.0455 ) + $450 ( 20.3037) - $1800
=$52591.5 + $9136.67 - $1800
= $61728.17 - $1800
= - $59928.17
The FW cost of alternative C is less than that of other alternatives. Therefore , alternative C is preferred.
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