Consider the following EOY cash flows for two mutually exclusive alternatives$($one must be$$ chosen$).$ The MARR is $10\%$ per year.

Lead Acid

Lithium Ion

Capital investment

$$$$7$ comma $000$

$$$$11$ comma $000$

Annual expenses

$$$$2$ comma $750$

$$$$2$ comma $200$

Useful life

$10$ years

$15$ years

Market value at end of useful life

$$$$0$

$$$$2$ comma $600$

LOADING... Click the icon to view the interest and annuity table for discrete compounding when iequals$10\%$ per year.

Question content area bottom

Part $1$

$($a$)$ Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of $30$ years.

The PW of the Lead Acid is $$$

$.($Round to the nearest $$dollar$.)$

The PW of the Lithium Ion is $$$

$.($Round to the nearest$$ dollar.$)$

Which alternative should be$$ selected? Choose the correct answer below.

Lead Acid

Lead Acid

Lithium Ion

Lithium Ion

$($b$)$ Determine which alternative should be selected based on the AW$$ method, also assuming repeatability.

The AW of the Lead Acid is $$$

$.($Round to the nearest $$dollar$.)$

The AW of the Lithium Ion is $$$

$.($Round to the nearest$$ dollar.$)$

Which alternative should be$$ selected? Choose the correct answer below.

Lead Acid

Lead Acid

Lithium Ion

Lithium Ion