0:00
Hello everyone.
00:01
So according to the given question, we'll calculate with two alternatives, both the alternatives, that is x and y.
00:07
So firstly, we'll calculate with alternative x.
00:12
So the first cost is given to us as 3 ,500, mc is 1100, n is infinite, and income is 600, and interest, that is i, is equal to 6%.
00:56
Now, we will calculate present worth, that is pw, which is equals to minus 3 ,500 plus minus 1100.
01:17
Here that is 6 % interest for 5 years plus 600, 6 % for 5 years.
01:27
Plus, 600, 6 % for infinite years...