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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 8,800 21,000 13,000 4,500 Initial Investment, $ Annual Revenues, $ Annual Costs, $ Salvage Value, $ 1.100 6,300 3,000 12,400 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. Click here to access the TVM Factor Table calculator. PW Model A-$ 3831 PW Model B - $ 16359 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? Model B
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