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Alternative 1 has a useful life of 5years. The initial investment is $15,000 and the annual cost of operating the system is $6,000. The salvage
Alternative 1 has a useful life of 5years. The initial investment is $15,000 and the annual cost of operating the system is $6,000. The salvage value at the end of five years is $3,000. Alternative 2 has a useful life of three years. The initial investment is $20,000 and the annual operating expense is $2,000. It has no salvage value at the end of 3 years. MARR = 20% What is the AW2 - AW1 assuming repeatability?
So I understand this as you find PW and then find AW. Please choose from the following options...
-$-478 | ||
-$8,882 | ||
-$882 | ||
+$478 |
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