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Please find AW of Alternative A and AW of Alternative B. Problem 8-28 (algorithmic) Question Help Two mutually exclusive alternatives are being considered. The MARR
Please find AW of Alternative A and AW of Alternative B.
Problem 8-28 (algorithmic) Question Help Two mutually exclusive alternatives are being considered. The MARR is 16% per year. General inflation is 5.5% / year. Based on the data below, perform an appropriate analysis to select the most economical alternative. Assume that the market value grows at the general inflation rate. Initial investment Annual revenue (actual $) Alternative B $250,000 $48,000 Alternative A $150,000 $39,000 $6,000 in year 1 increasing by $600 each year for remaining years $22,000 Annual cost (actual $) $7,000 $35,000 Market value at end of useful life (year 0 S) Useful life, years The AW of Alternative A is 5702.(Round to the nearest dollar.) Problem 8-28 (algorithmic) Question Help Two mutually exclusive alternatives are being considered. The MARR is 16% per year. General inflation is 5.5% / year. Based on the data below, perform an appropriate analysis to select the most economical alternative. Assume that the market value grows at the general inflation rate. Initial investment Annual revenue (actual $) Alternative B $250,000 $48,000 Alternative A $150,000 $39,000 $6,000 in year 1 increasing by $600 each year for remaining years $22,000 Annual cost (actual $) $7,000 $35,000 Market value at end of useful life (year 0 S) Useful life, years The AW of Alternative A is 5702.(Round to the nearest dollar.)Step by Step Solution
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