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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:
tableModel AModel BInitial Investment, $Annual Revenues, $Annual Costs, $Salvage Value, $
Assume a planning horizon of years and a MARR of 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 decimal places and then round your final answers to two decimal places. The tolerance is
Which alternative would your company prefer?
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