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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
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, $ 9,100 22,000 Annual Revenues, $ 4,100 10,000 Annual Costs, $ 1,100 6,300 Salvage Value, $ 2.100 9,600 Assume a planning horizon of 5 years and a MARR of 10%. 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.
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