Question: Two mutually exclusive alternatives are being evaluated, their costs and revenues are as follows: the MARR is 10% per year A B Investment $1,300,000

Two mutually exclusive alternatives are being evaluated, their costs and revenues are

Two mutually exclusive alternatives are being evaluated, their costs and revenues are as follows: the MARR is 10% per year A B Investment $1,300,000 $800,000 Revenues less 50,000 80,000 expenses Market value 60,000 30,000 Useful life 20 10 a) b) Calculate the AW of A and AW of B and compare. If the study period is 20 years, use the PW and the repeatability assumption to find which alternative is more economical

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