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TIUNIE 2.4 (25 points) Your company is upgrading the breakroom and kitchen. It is going to include an expresso machine, a fri
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There are two alternatives available; W & T. The analysis period is 6 years. However, useful life of alternative-w is 3 yearsAlternative-T Following is the formula to calculate the present worth: PW, = P +A(P/A,1,n)+F(P/F,1,n) Here P is the initial cFollowing is the formula to calculate the EUAW: EUAW = P(A/P,1,n)+ A+F(A/F,1,n) Here P is the initial cost A is the annual coAlternative-T Substitute the values in above equation. EUAW, =-$65,000(A/P,5%,6)-$12,000+ $25,000(A/F,5%,6) =-$65,000(0.197)

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