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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 9,500 22,000 Initial Investment, $ Annual Revenues, $ 3,800 11,000 Annual Costs, $ 1,000 6,400 Salvage Value, $ 3,000 12,000 Assume a planning horizon of 5 years and a MARR of 12%. Compute the PW of each alternative, and determine which vehicle the resort should purchase. Click here to access the TVM Factor Table calculator. PW Model A = $ PW Model B = $ Carry all interim calculations to 5 decimal places and then round your final answers to two decimal places. The tolerance is +10. Which alternative would your company prefer
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