Question: Consider the two mutually exclusive alternatives A and B for a water diversion project as described in Table 8. 20. Assume that the study period

Consider the two mutually exclusive alternatives A and B for a water diversion project as described in Table 8. 20. Assume that the study period is 15 years and repeatability is applicable. Using the annual worth method, which project do you recommend?

TABLE 8.20 Characteristics of Considered Projects in Problem 3 Project A Project

TABLE 8.20 Characteristics of Considered Projects in Problem 3 Project A Project B Capital investment $160,000 $240,000 Annual revenue $80,000 $112,000 Annual expense $35,200 $68,800 Useful life (years) 8 12

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