Question: Consider this data with MARR = 10%. System A System B Initial Cost 65000 85000 Service Life yrs 5 9 Annual Revenue 19000 19000 1.

Consider this data with MARR = 10%.
System A System B
Initial Cost 65000 85000
Service Life yrs 5 9
Annual Revenue 19000 19000
1. Why would AW (Annual Worth) be a convenient method here?
2. In order to use the AW approach there is something which must be planned for the future; what is it?
3. What is the AW of each for the given MARR?
4. Based on the result of 3 which is the better investment?
5. Determine if the internal rate of return for System A is higher than 15%.

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