Question: A constructionengineer has been asked to recomment an excavator for acquisition. Three alternatives have been identified, having the characteristics shown in the following table. (MARR=12%)

A constructionengineer has been asked to recomment an excavator for acquisition. Three alternatives have been identified, having the characteristics shown in the following table. (MARR=12%) a) Apply present worth analysis. b) Use shortest life to establish the planning horizon's length and apply present woth analysis again. c) Use longest life to establish the planning horizon's length and apply present woth analysis once more. d) Repeat PW analysis for 10 years standard analysis period. e) Consider an infinitely long planning period and calculate the annual worth for each investment alternatives

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