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Estimates for a proposed small public facility are as follows: Plan A has a first cost of $50,000, a life of 25 years, a $4,000
Estimates for a proposed small public facility are as follows: Plan A has a first cost of $50,000, a life of 25 years, a $4,000 market value, and annual maintenance expenses of $10,000. Plan B has a first cost of $90,000, a life of 50 years, no market value, and annual maintenance expenses of $6,000 for the first 15 years and $500 per year for years 16 through 50. Assuming interest at 10% per year, compare the two plans, using the CW method. The CW of Plan A is $ squarebox. (Round to the nearest hundreds.) The CW of Plan B is $ squarebox. (Round to the nearest hundreds.) Which plan would you choose? Choose the correct answer below. Plan A Plan B Estimates for a proposed small public facility are as follows: Plan A has a first cost of $50,000, a life of 25 years, a $4,000 market value, and annual maintenance expenses of $10,000. Plan B has a first cost of $90,000, a life of 50 years, no market value, and annual maintenance expenses of $6,000 for the first 15 years and $500 per year for years 16 through 50. Assuming interest at 10% per year, compare the two plans, using the CW method. The CW of Plan A is $ squarebox. (Round to the nearest hundreds.) The CW of Plan B is $ squarebox. (Round to the nearest hundreds.) Which plan would you choose? Choose the correct answer below. Plan A Plan B
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