Determine if the selection of system 1 or 2 is sensitive to variation in the return required by management.

The corporate MARR ranges from 8% to 16% per year on different projects. Use tabulated factors or a spreadsheet, as requested by your instructor.

System 1 System 2 First cost, $ 50,000 100,000 AOC, $ per year 6,000 1,500 Salvage value, $ 30,000 0 Rework at midlife, $ 17,000 30,000 Life, years 4 12