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Best Eastern Airline is considering four mutually exclusive alternatives for implementing an automated passenger check-in counter at its hub airport. Each alternative meets the same
Best Eastern Airline is considering four mutually exclusive alternatives for implementing an automated passenger check-in counter at its hub airport. Each alternative meets the same service requirements, but differences in capital investment amounts and benefits (cost savings) exist among them. The study period is 16 years, and the useful lives of all three alternatives are also 16 years. Alternative A requires an investment of $1,716,000 and the annual saving is $303,600. Alternative B requires an investment of $3,772,000 and the annual saving is $684,700. Alternative C requires an investment of $3,102,000 and the annual saving is $627,450. Alternative D requires an investment of $2,478,000 and the annual saving is $462,000. Market values of all alternatives are assumed to be zero at the end of their useful lives. If the airline's MARR is 11% per year, what is the FW of the selected project
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