QuestionSelect the best alternative based on present worth: A: $-25,000$ , B: $-12,000$ , C: $10,000$ . Which to choose?

Studdy Solution

STEP 1

Assumptions1. Alternative A has a present worth of -\$25,000. Alternative B has a present worth of -\$12,0003. Alternative C has a present worth of \$10,0004. The alternatives are mutually exclusive, meaning only one can be selected5. The best alternative is the one with the highest present worth

STEP 2

We need to compare the present worth of each alternative to determine which one is the best.

STEP 3

Alternative A has a present worth of -\$25,000. This means that if we choose this alternative, we will lose \$25,000.

STEP 4

Alternative B has a present worth of -\$12,000. This means that if we choose this alternative, we will lose \$12,000.

STEP 5

Alternative C has a present worth of \$10,000. This means that if we choose this alternative, we will gain \$10,000.

STEP 6

Comparing the present worth of each alternative, we can see that Alternative C is the best choice because it has the highest present worth.
The best alternative to select is Alternative C.

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QuestionSelect the best alternative based on present worth: A: $-25,000$ , B: $-12,000$ , C: $10,000$ . Which to choose?

Studdy Solution

STEP 1

Assumptions1. Alternative A has a present worth of -\$25,000. Alternative B has a present worth of -\$12,0003. Alternative C has a present worth of \$10,0004. The alternatives are mutually exclusive, meaning only one can be selected5. The best alternative is the one with the highest present worth

STEP 2

We need to compare the present worth of each alternative to determine which one is the best.

STEP 3

Alternative A has a present worth of -\$25,000. This means that if we choose this alternative, we will lose \$25,000.

STEP 4

Alternative B has a present worth of -\$12,000. This means that if we choose this alternative, we will lose \$12,000.

STEP 5

Alternative C has a present worth of \$10,000. This means that if we choose this alternative, we will gain \$10,000.

STEP 6

Comparing the present worth of each alternative, we can see that Alternative C is the best choice because it has the highest present worth.
The best alternative to select is Alternative C.

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QuestionSelect the best alternative based on present worth: A: −25,000-25,000−25,000, B: −12,000-12,000−12,000, C: 10,00010,00010,000. Which to choose?

Studdy Solution

STEP 1

Assumptions1. Alternative A has a present worth of -\$25,000. Alternative B has a present worth of -\$12,0003. Alternative C has a present worth of \$10,0004. The alternatives are mutually exclusive, meaning only one can be selected5. The best alternative is the one with the highest present worth

STEP 2

We need to compare the present worth of each alternative to determine which one is the best.

STEP 3

Alternative A has a present worth of -\$25,000. This means that if we choose this alternative, we will lose \$25,000.

STEP 4

Alternative B has a present worth of -\$12,000. This means that if we choose this alternative, we will lose \$12,000.

STEP 5

Alternative C has a present worth of \$10,000. This means that if we choose this alternative, we will gain \$10,000.

STEP 6

Comparing the present worth of each alternative, we can see that Alternative C is the best choice because it has the highest present worth.The best alternative to select is Alternative C.

Get Studdy

Studdy solves anything!

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

QuestionSelect the best alternative based on present worth: A: $-25,000$ , B: $-12,000$ , C: $10,000$ . Which to choose?

Comparing the present worth of each alternative, we can see that Alternative C is the best choice because it has the highest present worth.
The best alternative to select is Alternative C.