Question: Question 3: (0.5 point) Joan, the project manager, asks you to evaluate alternatives A and B on the basis of their PW values using a
Question 3: (0.5 point) Joan, the project manager, asks you to evaluate alternatives A and B on the basis of their PW values using a real interest rate of 10% per year and an inflation rate of 3% per year (a) without any adjustment for inflation, and (b) with inflation considered. Machine A B First cost, $ -31,000 -48,000 AOC, $ per year -28,000 -19,000 Salvage, $ 5,000 7,000 Life, years 5 5
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