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1.1 You're looking at three different, mutually-exclusive aftermarket safety features that can be installed on cars in order to decrease the possibility of collisions on
1.1 You're looking at three different, mutually-exclusive aftermarket safety features that can be installed on cars in order to decrease the possibility of collisions on the road. Option A: Investment is $26,000, annual expenses are $14,200, annual revenues are $17,100, and the market value is $7,000. Option B: Investment is $62,000, annual expenses are $8,500, annual revenues are $24,000, and the market value is $7,000. Option C: Investment is $44,000, annual expenses are $12,000, annual revenues are $26,700, and the market value is $8,100. The MARR is 18% per year. After 9 years, the aftermarket safety features will be removed and sold secondhand. A decision-maker can select one of these alternatives. The decision-maker is asked to make a recommendation using the present worth method. What is the present worth of all of the options (rounded to the nearest dollar)? a. Option A b. Option B c. Optionc
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