Question
A Project manager would like to select the more economical of two alternatives for an excavation dust control. Help the project manager evaluate and select
A Project manager would like to select the more economical of two alternatives for an excavation dust control. Help the project manager evaluate and select the proper alternative knowing that the estimated MARR = 12% per year.
| Equipment | Option 1 | Option 2 |
| Initial Cost $ | 40,000 | 75,000 |
| Annual Operating Cost (AOC), $ per year | 25,000 | 15,000 |
| Life, years | 4 | 6 |
| Salvage value, $ | 10,000 | 7,000 |
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Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
