|
|
|
|
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Problem data:
|
90/10 |
70/30 |
|
|
P |
$9,700 |
$16,500 |
|
n |
7 yrs |
10 yrs |
|
i% |
0.08 |
0.08 |
|
t |
0.44 |
0.44 |
|
S |
0 |
0 |
Solution:
|
90/10 |
70/30 |
||
|
1 |
-P |
-$9,700 |
-$16,500 |
|
{t(P-S)/n} |
$609.71 |
726.00 |
|
| 5.206 | 6.710 | ||
|
2 |
{t(P-S)/n}(P/A, i%, n) |
$3,174 |
$4,871 |
|
3 |
-(1-t)(X)(P/A, i%, n) |
0 |
0 |
|
4 |
0 |
0 |
|
|
PW |
Sum 1 + 2 + 3 + 4 |
-$6,526 |
-$11,628 |
|
0.1921 |
0.1490 |
||
|
A |
(PW)(A/P, i%, n) |
-$1,253 |
-$1,733 |
Answer: The 90/10 copper-nickel alloy is thus a more cost economical solution
