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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)
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