Compare the Alternatives Shown Below on the Basis of Their

Essay

Compare the alternatives shown below on the basis of their future worth, using an interest rate of 18% per year. Which alternative should be selected? $$\begin{array} { l | c | c | c } \hline \text { ernative } & \mathbb { M } & \mathbb { N } \\\hline \text { tial costs } & \$ 238,000 & \$ 213,000 & \$ 293,000 \\\hline \text { nual revenues } & \begin{array} { c } \$ 69,000 \text { in year } 1 , \\\text { increasing by } \$ 190 \\\text { each year }\end{array} & \$ 114,000 & \begin{array} { l } \$ 69,000 \\\text { in years } 1 \text { to } 5 , \\\$ 69,570 \\\text { in years } 6 \text { to } 16\end{array} \\\hline \text { nual expenses } & \$ 20,000 & & \$ 20,000 \\\hline \text { vage value } & \$ 6000 & \$ 25,000 & \$ 6000 \\\hline \text { e, years } & 16 & \$ 9000 & 16 \\\hline\end{array}$$