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Company B must choose one of two methods for its validation activity. Based on the information below, perform an AW analysis and make recommendation. MARR
Company B must choose one of two methods for its validation activity. Based on the information below, perform an AW analysis and make recommendation. MARR is 10% per year compounded quarterly. Please use the AW analysis.
Method | X | Y |
Initial Cost | 100,000 | 250000 |
Annual Operation Cost | 30,000 in year one increasing by 5000 each year | 200,00 |
Salvage Value | 0 | 0 |
Estimated Life in Year | 3 | 6 |
Please see below correct answer. How do you get this? Use Excel.
X | Y | |
FV | ||
PMT | ($75,152.98) | ($78,044.72) |
Winner |
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