Question: NEED ANSWER ASAP Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be
NEED ANSWER ASAP
Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. The firm's MARR is 20% per year. The estimated cash flows for each alternative are as follows: Capital Annual Useful Market value(at end of useful investment expenses life(years) life) Alternative A $20.000 4.000 5 $4.000 Alternative B $30,000 2.000 10 $6.000 Assume the study period is shortened to five years. The market value of alternative B after five years is estimated to be $12,000. Which alterative would you select using NPW-C? (Draw the cash flow diagram and solve.)
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