Titan manufactures and sells gas-powered electricity generators. It can purchase a new line of fuel injectors from either of two companies. Cost and savings estimates are available, but the savings estimates are unreliable at this time. Use an AW analysis at MARR  10% per year to determine if the selection between company A and B changes when the estimated savings varies as much as 40% from the best estimates. Use tabulated factors or a spreadsheet, as requested by your instructor.

Company A Company B First cost, $ 50,000 37,500 AOC, $ per year 7,500 8,000 Savings best estimate, $ per year 15,000 13,000 Salvage, $ 5,000 3,700 Life, years 5 5