Question
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The...
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is
4%
per year.
|
Lead Acid |
Lithium Ion |
|
|---|---|---|
|
Capital investment |
$5,000 |
$13,000 |
|
Annual expenses |
$2,250 |
$2,500 |
|
Useful life |
12 years |
18 years |
|
Market value at end of useful life |
$0 |
$2,600 |
LOADING...
Click the icon to view the interest and annuity table for discrete compounding when
i=4%
per year.
Determine which alternative should be selected if the repeatability assumption applies.
The AW of the Lead Acid is
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