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First Cost S100,000 $35,000 per year increase of $3,000 per year S5 $205 Benefits O&M Costs Salvage Value Useful Life ROR $45,000 in year 1; for each of the following years $15,000 8 years 10,000 $10,000 4 years 10 85% 14. The NPW of Alternative #1 (necessary to make a decision between the two alternative) is closest to a) $3,249 $1,930 ) $543 e) $2,227 8) $723 h) $431 )$3,860 15. The increase in O&M costs that would result in a 10% ROR for Alternative #1 is closest to $483 per year 517 per year c) $813 per year d) S609 per year e) $407 per year $702 per year g)O&M costs need to decrease in order to earn a ROR of 10% h) not enough information to determine The EUAB for Alternative #2 is closest to discussed in class.) ./16. (Remember to treat the salvage value using 0) S37.525 EUAB5c+3oso b) $43,811 c) $80,939 d) $72,373 e) $44,592 DS54,012 $55,323 7. The EUAC for Alternative #2 is closest to iscussed in class.) to treat the salvage value using the st (Remember 847,106 $50,782 $35,939
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