Question
Please show work by hand thank you 2 alternatives for an off-grid energy system are being compared by a company building a house in New
Please show work by hand thank you
2 alternatives for an off-grid energy system are being compared by a company building a house in New Mexico (From Providers A and B). Alternative A is a solar energy system that has a life of 8 years, the first cost of $18,000, annual energy cost savings (can be treated as revenue in this cash flow) of $2600, and a salvage value after 8 years of $9000. Alternative B is a wind energy system that has a life of 12 years, with an initial cost of $21,500, annual energy cost savings of $3200, and a salvage value after 12 years of $9000. MARR is 7%, and alternatives are replicable in the future. Using an appropriate method of analysis, choose the better alternative. Show calculation steps leading to this choice and provide explanations whenever possible.
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