Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 30

Of the following three relations, the correct one or ones to calculate the annual worth of vendor 1 cash flow estimates is (note: all dollar values are in thousands):
Relation 1: AW 1 = -200( A / P ,6%,10) + 70 + 25( A / F ,6%,10)
Relation 2: AW 1 = [-200 - 50( P / A ,6%,10) + 120( P / A ,6%,10) + 25(P/F,6%, 10)]( A / P ,6%,10)
Relation 3: AW 1 = -200( F/P ,6%,10) + 25 + (-50 + 120)( A / P ,6%,10)
a) 1 and 3
b) Only 1
c) 1 and 2
d) Only 3
The alternatives are mutually exclusive and the MARR is 6% per year.