Question: HEY CAN YOU SOLVE THIS FOR ME USING EXCEL FUNCTIONS AND EXPLAIN HOW? Consider this data with MARR = 10%. System A System B Initial
HEY CAN YOU SOLVE THIS FOR ME USING EXCEL FUNCTIONS AND EXPLAIN HOW?
| Consider this data with MARR = 10%. | |||||||||
| System A | System B | ||||||||
| Initial Cost | 70000 | 122000 | |||||||
| Service Life yrs | 5 | 11 | |||||||
| 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 IRR for System A is higher than 15%. | |||||||||
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