Would the recommendation change if landfill costs double to $40 per cubic yard?

Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. The MARR is 20% per year. At the conclusion of the useful life, the investment will be sold.

A decision-maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method. Problem Problem Three mutually exclusive design alternatives are being considered. The estimated sales and cost data for each alternative are given below. The MARR is 20% per year.

Annual revenues are based on the number of units sold and the selling price. Annual expenses are based on fixed and variable costs. Determine which selection is preferable based on AW. State your assumptions.

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IB Investment cost $28,000 $55,0oo$40,000 Annual expenses $15,000 $13,000 s22,000 Annual revenues $23,000 $28,000S32,000 S6,000 S8,000 s10,000 Market value Useful life 10 years10 years10 years IRR 26.4% 24.7% 224% Investment cost S30,000 S60,000s40,000 Estimated units to be sold/year15,000 20,0000 18,000 Unit selling price, $/unit $3.10 $4.40 $3.70 Variable costs, S/unit $1.00 $1.40 s0.90 Annual expenses (fixed costs) S15,000 S30,000$25,000 Market value $10,000 s10,000s10,000| Useful life 10 years10 years10 years