Question: and cost 2. Three mutually exclusive design alternatives are being considered. The estimated sales data for each alternative have been tabulated. The MARR is 20%
and cost 2. Three mutually exclusive design alternatives are being considered. The estimated sales data for each alternative have been tabulated. 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 F W. Confirm your selection by separately checking is preferable using pw. Investment cost Est. units sold/year Unit selling price Unit variable cost Fixed annual expenses Market value Useful life A $ 30,000 15,000 $ 3.50 $ 1.00 $ 15,000 0 10 yrs B $ 60,000 20,000 $4.40 $ 1.40 $ 30,000 $ 20,000 10 yrs $ 50,000 18,000 $ 4.10 $ 1.15 $ 26,000 $ 15,000 10 yrs
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