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In the design of a new facility, the mutually exclusive alternatives in the table below are under consideration. Assume that the interest rate (MARR) is

In the design of a new facility, the mutually exclusive alternatives in the table below are under consideration. Assume that the interest rate (MARR) is 15% per year and the analysis period is 10 years. Use the following methods to choose the best of these three design alternatives

Design 1

Design 2

Design 3

Capital Investment

$28,000

$16,000

$23,500

Annual revenues less expenses

$5,500

$3,300

$4,800

Market Value

$1,500

0

$500

Useful life (years)

10

10

10

AW method

FW method

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