Two mutually exclusive alternatives have the estimates shown below. Use annual worth analysis to determine which should be selected at an interest rate of 10% per year.
 FIGURE 1.png)
AWQ = -42,000(A/P,10%,2) – 6000
= -42,000(0.57619) – 6000
= $-30,200
AWR = -80,000(A/P,10%,4) – [7000 + 1000(A/G,10%,4)] + 4000(A/F,10%,4)
= -80,000(0.31547) – [7000 + 1000(1.3812)] + 4000(0.21547)
= $-32,757
Select project Q
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