Answered: Alternativ ousands) $500,000 gs…

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Alternativ ousands) $500,000 gs (thousands) $131,900 y assumption, what is the PW 5.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...

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Question

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Q.47 Using the repeatability assumption, what is the PW of Alternative Y? O. $22,436 O. $58,192 O. $7,740 O. $12,385 Q. 48 Using coterminated assumption, what is the FW of Alternative X? O. $12,385 O. $7.740 O. $22,436 O. $58,192 Q. 49 Using the coterminated assumption, what is the FW of Alternative Y? O. $22,436 O. $58,192 O. $12,385 O. $7,740 Q. 50 Which alternative is selected? O. Alternatíve X O. Alternative Y O. neither X nor Y is economically attractive O. X and Y are equally attractive

46-50: Consider the mutually exclusive alternatives given in the table below. The
MARR is 10% per year.
Alternative X Alternative Y
Capital Investment (thousands)
$500,000
$250,000
Uniform Annual Savings (thousands)
$131,900
$40,690
Useful life, years
10
Using the repeatability assumption, what is the PW of Alternative X?
O $12,385
$58,192
$22,436
$7,740

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