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Estimates for a proposed small public facility are as follows: Plan A has a first cost of $70,000, a life of 25 years, a $5,000
Estimates for a proposed small public facility are as follows: Plan A has a first cost of $70,000, a life of 25 years, a $5,000 market value, and annual maintenance expenses of $1,400. Plan B has a first cost of $95,000, a life of 50 years, no market value, and annual maintenance expenses of $5,000 for the first 15 years and $1,000 per year for years 16 through 50. Assuming interest at 9% per year, compare the two plans, using the CW method. Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year. The CW of Plan A is $|| (Round to the nearest hundreds.) The CW of Plan B is $ (Round to the nearest hundreds.) Which plan would you choose? Choose the correct answer below. a Plan A Plan B
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