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A project engineer is assigned to provide computer networking and internet access to an office building. After research, various equipment suppliers' two alternatives are detailed
A project engineer is assigned to provide computer networking and internet access to an office building. After research, various equipment suppliers' two alternatives are detailed for further economic analysis. Alternative A is a wireless network with lower capital investment costs but higher operational costs. Alternative B is a wired network with low operational costs but higher equipment and installation costs. The costs associated with each of the two (2) alternatives are outlined below. Alternative A Wireless Network Alternative B Wired Network Design P50,000 P100,000 Equipment P50,000 P100,000 Installation P25,000 P100,000 Upgrades P25,000 per year 0 Maintenance & Operation P25,000 per year P5,000 per year Salvage P10,000 P5,000 Service Life 6 years 9 years Using the information provided above, determine which alternative to recommend using PW analysis. Conduct the analysis twice, once for the least common multiple of the service lives and once using a five-year study period. Compare your findings. Assume a 10% interest rate
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