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2. Two alternatives for a carwash business include a fully automatic systems at an initial cost of $200,000 with annual operating costs of $24,000 and
2. Two alternatives for a carwash business include a fully automatic systems at an initial cost of $200,000 with annual operating costs of $24,000 and a semi automatic system with an initial cost of $100,000 with annual operating costs of $36,000. The variable cost of each car wash is $ 2.5 for first alternative and $3.5 for the second alternative. What is the point of indifference between these two alternatives? MARR=10% and both systems work for 10 years
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