Question
Consider these two alternatives. Alternative 1 Alternative 2 Capital investment ? $4400 ? $6400 Annual revenues ?$1450 ?$1950 Annual expenses ?$370 ?$510 Estimated market value
Consider these two alternatives.
Alternative 1 Alternative 2
Capital investment ? $4400 ? $6400
Annual revenues ?$1450 ?$1950
Annual expenses ?$370 ?$510
Estimated market value ?$850 ? $1250
Useful life 9 years 12 years
a. Suppose that the capital investment of Alternative 1 is known with certainty. By how much would the estimate of capital investment for Alternative 2 have to vary so that the initial decision based on these data would be? reversed? The annual MARR is 18?% per year. b. Determine the life of Alternative 1 for which the AWs are equal.
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Data Communications Network Auditing How To Save Hundreds Of Thousands Of Dollars And Still Improve Network Response Time Network Performance And Network Availability
Authors: Bruce Griffis
1st Edition
0936648937, 978-0936648934
