# Equivalent Annual Worth

With an interest rate of 10% per year and given the following estimates, the annual worth of alternative ''F'' is closest to?

A. $32,600

B. $36,100 ALTERNATIVE ''F''

C. $39,020

D. $43,500 First cost, $ -200,000

Annual cost, $/year -50,000

Annual Revenuue, $/year 120,000

Salvage Value, $ 25,000

Life, years 10

https://brainmass.com/economics/applied-economics/equivalent-annual-worth-49257

#### Solution Preview

In order to find the annual worth, we first need to find the Present Worth (PW) of the alternative F. The net annual income is 120,000-50,000 = 70,000. The PW of this can be ...

#### Solution Summary

The solution explains how to calculate the present worth and annual worth