Question: do not use excel 18. Assume you calculated EUAB - $52,432 and EUAC = $48,953 (These are not the true values!). The decrease in the
18. Assume you calculated EUAB - $52,432 and EUAC = $48,953 (These are not the true values!). The decrease in the salvage value that could occur and result in a ROR of 18.00% for Alternative #2 is closest to... a) $3,479 b) $1,217 c) $7,241 d) $38,992 e) $70,050 f) $75,000 per year g) $42.221 h) not enough information to determine You must decide between two potential alternatives using Annual Cash Flow Analysis. NOTE: The first alternative (which has an expected life of eight (8) years) has already been calculated for you. It was found to have a EUAW = $37,989 based on an MARR -18%. Initial Cost Benefits Alternative #2 $225,000 $70,000 in year 1, Remaining years grow by 15% more than the previous year $20,000 per year $50,000 O&M Costs Salvage Life in years)
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