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a. What is the PW for Alternative B? Round to the nearest integer. b. If Joy Co. chooses to do nothing, what would be the
a. What is the PW for Alternative B? Round to the nearest integer.
b. If Joy Co. chooses to do nothing, what would be the PW of this option?
Joy Co. is considering two projects, Alternative A and Alternative B, that it anticipates would increase the energy efficiency of the facility where it produces its rainbow colored party supplies. Note that it may also choose to forgo any upgrades. Joy Co. plans to be in its current facility for another five years, at which point it will sell its remaining assets. Alternative A costs $10,000 to install and will produce an estimated annual revenue of $3000. It does not have any salvage value. Alternative B costs $25,000 to install and will produce an estimated annual revenue of $5000 annually. It has a salvage value of $10,000 at the end of its useful life. Compute the PW of each alternative and state which alternative the company should pursue. Use MARR = 6%Step by Step Solution
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