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2. An engineer works on deciding which of the following alternatives should be invested. The MARR of the company is 20% per year and budget
2. An engineer works on deciding which of the following alternatives should be invested. The MARR of the company is 20% per year and budget limit is $150,000. Each alter- native require a one-time cost as half as it's first cost at the end of the mid-year of it's useful life. Assist the engineer on her decision. Alternatives B A D E First Cost ($) Annual Revenues ($) One-time cost ($) Salvage value ($) Useful life -40,000 -30,000 -60,000 -50,000 -90,000 14,600 11,000 19,200 14,100 5,800 10,000 15,000 7,500 12,000 8,000 5,000 8,000 12,000 6 10 12 6 6 (a) What is your suggestion if the alternatives are independent? (b) What is your suggestion if the alternatives are mutually exclusive
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