Question: Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year. Lead Acid Lithium Ion
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year. Lead Acid Lithium Ion Capital investment $6,000 $15,000 Annual expenses $2,500 $2,500 Useful life 12 years 18 years Market value at end of useful life $0 $2,600 Click the icon to view the interest and annuity table for discrete compounding when /= 6% per year. Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 36 years. The PW of the Lead Acid is $(Round to the nearest hundreds.) The PW of the Lithium Ion is $1(Round to the nearest hundreds.) Which alternative should be selected? Choose the correct answer below. O Lead Acid O Lithium Ion
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