Question

Alternative B may be replaced with an identical item every 30 years at the same cost and annual benefit. Using a 10 percent interest rate and an annual cash flow analysis: AB Cost Uniform Annual Benefit Useful life, in years $ 90,000 $ 15,000 infinite $ 120,000 $ 18,000 30 a) What is the EUAW of Alternative A ($/year)

Answer 1

Answer:

Check the explanation

Explanation:

The Overall Equivalent Uniform Annual Worth (EUAW) of any asset is presented by: EUAW = EUAB (benefits) - EUAC (costs) take for example: An asset with an original cost of 100,000 dollars and an projected scrap value of $40,000 which is after its 6-year service span.

Kindly check the attached images below to see the EUAW of Alternative A ($/year).