Question

Dertermine which of the two following cash flows is preferable, using a MARR of 12%. You...

Dertermine which of the two following cash flows is preferable, using a MARR of 12%. You can use any method you prefer and may assume repeatability is an acceptable assumption. Option A requires an initial investment of $35000 and produces for five years an annual return of $9400. The salvage value at five years is expected to be $5000. Option B requires an initial investment of $50000 and produces an annual return for seven years of 10300. The salvage value at seven years is expected to be $10700.

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