Estimates for a proposed small public facility

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Reference no: EM13740029

Estimates for a proposed small public facility are as follows: Plan A has a first cost of $50,000, a life of 25 years, a $5,000 market value, and annual maintenance expenses of $1,200. Plan B has a first cost of $90,000, a life of 50 years, no market value, and annual maintenance expenses of $6,000 for the first 15 years and $1,000 per year for years 16 through 50. Assuming interest at 10% per year, compare the two plans, using the CW method. (6.4)

Reference no: EM13740029

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