Two proposals have been offered for streamlining the business operations of a customer call center. Proposal A has an investment cost of $30,000, an expected Hie of five years, property taxes of $450 per year, and no market value. Annual expenses are estimated to be $6,000.
Proposal B has an investment cost of $38,000, an expected life of four years, property taxes of $600 per year, and no market value. Its annual operating expenses are expected to be $4,000.
Using a MARR = 10% per year, which proposal should be recommended? Use the AW method and state your assumption(s).