Question: Joy Co. is considering 2 projects, Alternative A and Alternative B, that it anticipates would increase the energy efficiency of the facility where it produces
Joy Co. is considering 2 projects, Alternative A and Alternative B, that it anticipates would increase the energy efficiency of the facility where it produces its rainbow-colored party supplies. Note that it may also choose to forgo any upgrades. Joy Co. plans to be in its current facility for another 5 years, at which point it will sell its remaining assets. Alternative A costs $10,000 to install and will produce an estimated annual savings of $3,187. It does not have any salvage value. Alternative B costs $29,000 to install and will save $6,200 annually. It has a salvage value of $12,000 at the end of its useful life. Compute the FW of each alternative, assuming a MARR of 12%. Click here to access the TVM Factor Table calculator. FW Alternative A $ Alternative B Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is $10. Which of the alternatives should Joy Co. pursue
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