Two mutually exclusive design alternatives are being considered for purchase. Doing nothing is also an option....

  

Transcribed Image Text:

Two mutually exclusive design alternatives are being considered for purchase. Doing nothing is also an option. The estimated cash flows for each alternative are given below. The MARR is 7% per year. Using the PW method, which alternative, if either, should be recommended? Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 7% per year. The PW for the Alternative 1 is $ The PW for the Alternative 2 is $ should be selected. (Round to the nearest dollar.) (Round to the nearest dollar.) Capital Investment Annual Revenues Annual Expenses MV at end of useful life Useful Life IRR Alternative 1 $16,000 $7,000 $2,400 $1,600 4 years 9.1% Alternative 2 $23,000 $13,000 $5,000 $600 12 years 33.7% □ Two mutually exclusive design alternatives are being considered for purchase. Doing nothing is also an option. The estimated cash flows for each alternative are given below. The MARR is 7% per year. Using the PW method, which alternative, if either, should be recommended? Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 7% per year. The PW for the Alternative 1 is $ The PW for the Alternative 2 is $ should be selected. (Round to the nearest dollar.) (Round to the nearest dollar.) Capital Investment Annual Revenues Annual Expenses MV at end of useful life Useful Life IRR Alternative 1 $16,000 $7,000 $2,400 $1,600 4 years 9.1% Alternative 2 $23,000 $13,000 $5,000 $600 12 years 33.7% □

Answer rating: 100% (QA)

PW of Alternative 1 16000 70002400PA 74 1600P... View the full answer