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2. For the following alternatives cash flows listed below : a) Which alternative (X or Y) would you recommend By Using Method 2? The MARR
2. For the following alternatives cash flows listed below : a) Which alternative (X or Y) would you recommend By Using Method 2? The MARR is 10% per year. b) If n* = 6 years. Calculate the Implied Salvage Value for alternative Y. c) If n* = 12 use Method 3 by evaluating the FW to select the best alternative? MARR is 10% per year Capital investment Annual net flow Salvage value Useful life (years) Alternative X Y $45,000 $52,000 10,500 25,350 $9,200 $0 6 9
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