Question: Two alternatives are shown below. The MARR is 9% per year. The study period is 10 years. What is the AW of Alternative A, B?
Two alternatives are shown below. The MARR is 9% per year. The study period is 10 years.
What is the AW of Alternative A, B?
Which alternative should be recommended?
Solve by hand, not excel. thanks!
Alternative A Alternative B Capital Investment $110,000 $130,000 Annual expenses $40,000 $30,000 Annual revenue $97,000 $85,000 Salvage value $10,000 $15,000 Life 10 years 10 years Alternative A Alternative B Capital Investment $110,000 $130,000 Annual expenses $40,000 $30,000 Annual revenue $97,000 $85,000 Salvage value $10,000 $15,000 Life 10 years 10 years
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