Three mutually exclusive design alternatives are being considered. The estimated sales and cost data for

each alternative are given on p. 292. 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.

Investment cost $30,000 15,000 $60,000 $50,000 20,000 Estimated units 18,000 to be sold/year Unit selling price, $/unit Variable costs, $/unit Annual expenses (fixed) $4.40 $3.50 $4.10 $1.00 $1.40 $1.15 $15,000 $30,000 $26,000 Market value $20,000 $15,000 10 years 10 years 10 years Useful life