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Homework answers / question archive / The owner of a comer lot wants to find a use that will yield a desirable return on his investment After much study and calculation, the owner decides that the two best alternatives are: First Cost Annual Maintenance Annual Income Salvage Value Life of Building in Years 3 axis CNC $80,000 3,000 11,000 0 15 5-axis CNC $120,000 5,000 16,000 0 20 If the owner wants a minimum attractive rate on his investment of 6%, using net annual worth (NAW) analysis, which of the two alternatives would you recommend?
The owner of a comer lot wants to find a use that will yield a desirable return on his investment After much study and calculation, the owner decides that the two best alternatives are: First Cost Annual Maintenance Annual Income Salvage Value Life of Building in Years 3 axis CNC $80,000 3,000 11,000 0 15 5-axis CNC $120,000 5,000 16,000 0 20 If the owner wants a minimum attractive rate on his investment of 6%, using net annual worth (NAW) analysis, which of the two alternatives would you recommend?
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