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7 Titan manufactures and sells gas-powered electricity generators. It can purchase a new line of fuel injectors from either of two companies: A or
7 Titan manufactures and sells gas-powered electricity generators. It can purchase a new line of fuel injectors from either of two companies: A or B. The AOC and annual savings estimates are available, but the savings estimate is unreliable at this time. Use an AW analysis at MARR 10% per year to determine if the selection between A and B changes when the estimated savings varies as much as 40% from the best estimates, and if so, at what percentage in the estimate? Use tabulated factors. Company A B 8014739 First cost, $ -54,000 -47,500 AOC. $ per year -7,500 -8,000 Savings best estimate, $ per year 15,000 Salvage value, $ 5,000 13,000 3,700 Life, years 5 Click to select, the selection between A and B (Click to select when the estimated savings is (Click to select)
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