Question
Consider the mutually exclusive alternatives in the table below. The MARR is 4% per year. X Y Z Capital investment $400,000 $200,000 $320,000 Annual savings
Consider the mutually exclusive alternatives in the table below. The MARR is 4% per year.
X Y Z
Capital investment $400,000 $200,000 $320,000
Annual savings of $105,650 $32,552 $35,240
Useful life (years) 15 30 60
What is the equivalent annual value of the most profitable alternative, assuming repeatability?
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ANSWER IS To find the equivalent annual value EAV of each alternative we can use the following ...
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
132554909, 978-0132554909
