Question: You are faced with a choice between Options A or B below. Each option has a first cost and one revenue at the end of

You are faced with a choice between Options A or B below. Each option has a first cost and one revenue at the end of its life. Assume that both alternatives may be replaced at the end of their useful lives. For the analysis, you will be using a MARR of 8%.

You are faced with a choice between Options A or B below. (a) Compare each alternative's PW with a 10 year horizon. (b) Compare each alternative's EAW.

Year 0 Option A -$10,000 Year Option B -$10,000 +$45,000 10 Life, Years 10 +$24,88 Life, Years 5

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