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A resort would like to ensure that it has vehicles to transport guests who have difficulty walking around its facilities. It is trying to decide

A resort would like to ensure that it has vehicles to transport guests who have difficulty walking around its facilities. It is trying to decide between two different vehicles: Model A or Model B. These options are mutually exclusive. The cash flow profiles for each of these alternatives are given below: Model A Model B Initial Investment, $ 9400 21000 Annual Revenues, $ 3700 13000 Annual Costs, $ 1000 6100 Salvage Value, $ 2300 9700 Assume a planning horizon of 5 years and a MARR of 11%. Compute the PW of each alternative, and determine which vehicle the resort should purchase. PW Model A = $ PW Model B = $ Which alternative would your company prefer

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