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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