Question: x1=7% & x2= $15,000 please solve it by hand and not excel The government of a particular city is considering two mutually exclusive water purification
x1=7% & x2= $15,000
please solve it by hand and not excel
The government of a particular city is considering two mutually exclusive water purification systems for implementation. Doing nothing is not an option. Refer to the data below to determine which system should be selected, when MARR = xl% per year (assume repeatability) a. Use the AW method b. Use the PW method c. Use rate of return method Alternative System 1 System 2 Capital Investment $100,000 $150,000 Annual revenues $50,000 $70,000 Annual expenses $22,000 $40,000 Market value at end of useful life $20,000 $x2 Useful life (years) 5 10
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