Table 5 -The NPW of Alt

Table 5
$$\begin{array} { | l | l | l | l | } \hline & \mathrm { A } & \mathrm { B } & \mathrm { C } \\\hline \text { Initial cost } & \$ 15,000 & \$ 9,000 & \$ 12,000 \\\hline \text { Annual benefit } & \$ 8,000 & \$ 2,000 & \$ 1,800 \\\hline \text { Salvage value } & \$ 5,000 & \$ 9,000 & 0 \\\hline \text { Life in years } & 2 \text { years } & 3 \text { Years } & \text { Infinity } \\\hline \text { MARR } & &&10 \% \\\hline\end{array}$$
-The NPW of alt. A is __________________.

A) $13,420
B) $17,380
C) $11,000
D) $6,000

Correct Answer:

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