Question: Two mutually exclusive design alternatives are shown below. The MARR is 12% per year. Use the repeatability assumption. What is the PW of Alternative A
Two mutually exclusive design alternatives are shown below. The MARR is 12% per year. Use the repeatability assumption.
What is the PW of Alternative A and B?
And which alternative should be recommended?
please solve normally, not excel
Alternative A Alternative B Capital Investment $23,000 $25,000 Annual expenses $8,852 $9,503 Annual revenue $15,492 $17,381 Market Value at $2,000 $2,100 end of useful life Life 4 years 12 years IRR 19.3% 15.7%
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