Question: A company's MARR is 10% per year. Two mutually exclusive alternatives are being considered. Compare the two alternatives utilizing: a. The repeatability assumption with a



A company's MARR is 10% per year. Two mutually exclusive alternatives are being considered. Compare the two alternatives utilizing: a. The repeatability assumption with a 10 year study period. b. A 5 year study period (MV5 of Alt. 1 is $45,000). Click the icon to view the datatable for the additional information about two alternatives. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. a. AW1 for 10 years =$. (Round to the nearest dollar.) AW2 for 5 years =$ (Round to the nearest dollar.) Select b. AW1 for 5 years =$. (Round to the nearest dollar.) Select \begin{tabular}{crr} \hline EOY & \multicolumn{1}{c}{ Alt. 1 } & \multicolumn{1}{c}{ Alt. 2 } \\ \hline 0 & $70,000 & $68,000 \\ 1 & $10,000 & $15,300 \\ 2 & $10,000 & $15,300 \\ 3 & $10,000 & $15,300 \\ 4 & $10,000 & $15,300 \\ 5 & $10,000 & $44,300 \\ 6 & $10,000 & \\ 7 & $10,000 & \\ 8 & $10,000 & \\ 9 & $10,000 & \\ 10 & $40,000 & \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
