Question

Two pieces of construction equipment are being analyzed. Year Alt. A Alt. B 0 -$11,000 -$14,000...

Two pieces of construction equipment are being analyzed.

Year

Alt. A

Alt. B

0

-$11,000

-$14,000

1

$3,400

$5,000

2

$3,500

$4,500

3

$3,600

$4,000

4

$3,400

$4,000

5

$3,400

$4,000

Based on present worth analysis and a 5% interest rate, which alternative should be selected?

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