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Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 12% per year. Capital Investment Annual expenses
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 12% per year. Capital Investment Annual expenses Useful life Market value at end of useful life Lead Acid $8,000 $2,250 12 years $0 Lithium lon $13,000 $2,300 18 years $2,800 Click the icon to view the interest and annuity table for discrete compounding when /= 12% per year. (a) Determine which altemative should be selected based on the PW method. Assume repeatabllity and use a study period of 36 years. The PW of the Lead Acid is $ (Round to the nearest hundreds.) The PW of the Lithium Ion is $ (Round to the nearest hundreds.) Which alterative should be selected? Choose the correct answer below. O O Lithium Ion Lead Acid (b) Would the selected alternative remain the same if the MARR were 6%?. The PW of the Lead Acid is $ . (Round to the nearest hundreds.) The PW of the Lithium Ion is $ (Round to the nearest hundreds.) Which alternative should be selected? Choose the correct answer below. O A Lead Acid O B. Lithium Ion
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