Case 4 Model A $2,000 $2,000 $2,000 $2,000 Years 5 6 0 1 2 3 4 7 8 9 10 11 12 $5,000 $5,000 $5,000 $5,000 $12,500 Second Third First cycle Fourth cycle cycle cycle Model B Analysis Period Is Not Specified What to do o Come up with replacement projects that serve out the least common multiple period (LCM). o Compute the NPW for each project over the LCM. o PW(15%)A = -$53,657 PW(15%) = -$48,534 $1,500 $1,500 $1,500 Years 1 1 4 0 1 2 3 5 6 7 9 10 11 12 8 1 1 $4,000 $4,000 $4,000 = o First $15,000 cycle = Second cycle Third cycle