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5-2. In the design of a new facility, the mutually exclusive alternatives in Table P5-2 are under consideration. Assume that the interest rate (MARR) is
5-2. In the design of a new facility, the mutually exclusive alternatives in Table P5-2 are under consideration. Assume that the interest rate (MARR) is 15% per year and the analysis period is 10 years. Use the following methods to choose the best of these three design alternatives: (5.4) a. AW method. b. FW method. TABLE P5-2 Table for Problem P5-2 Design 1 Design 2 Design 3 Capital investment $28,000 $16,000 $23,500 Annual revenues less expenses 5,500 3,300 4,800 Market value 1,500 0 500 sul life (years) 10 10 10
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