Consider the following mutually exclusive investment alternatives (MARR= 12%/year). Compare the alternatives based on PW. Which...

 

 

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Consider the following mutually exclusive investment alternatives (MARR= 12%/year). Compare the alternatives based on PW. Which one is better? Alternative A First cost: 15.000.000$ Revenues: 800.000$/year starting from the 3 year till the end of the life Salvage value: 50.000$ Estimated Life: 4 years Alternative B First cost: 500$ Outflows: 800.000$ in the 1 year, decreasing with 50.000$ each year till the end of the life Salvage value: 50.000$ Consider the following mutually exclusive investment alternatives (MARR= 12%/year). Compare the alternatives based on PW. Which one is better? Alternative A First cost: 15.000.000$ Revenues: 800.000$/year starting from the 3 year till the end of the life Salvage value: 50.000$ Estimated Life: 4 years Alternative B First cost: 500$ Outflows: 800.000$ in the 1 year, decreasing with 50.000$ each year till the end of the life Salvage value: 50.000$