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Question 18 A consulting engineering is considering we made of SUVs for the company principal AGM model will have a first cos
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Answer #1

Option (2).

For GM, Annual worth = - $36,000 x A/P(15%, 3) - $4,000 + $15,000 x P/F(15%, 3) x A/P(15%, 3)

= - $36,000 x 0.4380 - $4,000 + $15,000 x 0.4380** x 0.6575**

= - $15,768 - $4,000 + $4,320

= - $15,448

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