Question
Based on Aw and PW analysis compare the two alternatives, using MARR of 10%. Treatment A has an initial cost, an annual operations cost, and
Based on Aw and PW analysis compare the two alternatives, using MARR of 10%. Treatment A has an initial cost, an annual operations cost, and life as shown in the table. Treatment B has different initial cost, annual operations costs, and life as shown in the table below:
Perform the PW Analysis over the LCM years for alternative 2
| Machine 1 | Machine 2 | |
| INV | -7500 | -25000 |
| R | 1500 | 4400 |
| S | 400 | 1600 |
| n | 5 | 10 |
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
8th Edition
0077261453, 978-0077261450
