Question: Two alternatives are shown below. The MARR is 18% per year. Use the coterminated assumption. The study period is 5 years. What is the FW
Two alternatives are shown below. The MARR is 18% per year. Use the coterminated assumption. The study period is 5 years.
What is the FW of Alternative A and B?
Which alternative should be recommended?
please solve normally, not using excel.
Alternative A Alternative B Capital Investment $23,000 $25,000 Annual expenses $0 $0 Annual revenue $17,000 $15,000 Market Value at $0 $5,000 end of useful life Life 5 years 8 years
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