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a) What is the PW of investment option 1? b) What is the PW of investment option 2? c) What is the PW of investment
a) What is the PW of investment option 1?
b) What is the PW of investment option 2?
c) What is the PW of investment option 3?
1. Your company is considering three mutually exclusive investments as described in the table below. Based on a 15-year study period and 11% MARR, you are tasked to determine which investment should be selected Investment Option 1: Initial Investment: $58,000 Net Annual Revenue: $11,000 Salvage Value: $5,000 Useful Life: 18 Investment Option 2 Initial Investment: $46,000 Net Annual Revenue: $10,000 Salvage Value: $1,000 Useful Life: 15 Investment Option 3: Initial Investment: $30,000 Net Annual Revenue: $9,000 Salvage Value: $4,000 Useful Life: 9 Note: The repeatability assumption cannot be applied. Hint: imputed market value technique will need to be applied to Investment 1 and assume cotermination at 15-years with reinvestment for Investment 3. 1. Your company is considering three mutually exclusive investments as described in the table below. Based on a 15-year study period and 11% MARR, you are tasked to determine which investment should be selected Investment Option 1: Initial Investment: $58,000 Net Annual Revenue: $11,000 Salvage Value: $5,000 Useful Life: 18 Investment Option 2 Initial Investment: $46,000 Net Annual Revenue: $10,000 Salvage Value: $1,000 Useful Life: 15 Investment Option 3: Initial Investment: $30,000 Net Annual Revenue: $9,000 Salvage Value: $4,000 Useful Life: 9 Note: The repeatability assumption cannot be applied. Hint: imputed market value technique will need to be applied to Investment 1 and assume cotermination at 15-years with reinvestment for Investment 3Step by Step Solution
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