Question
Problem 2 10 points Company B must choose one of two methods for its validation activity. Based on the information below, perform a PW analysis
Problem 2 10 points
Company B must choose one of two methods for its validation activity. Based on the information below, perform a PW analysis and make recommendation. MARR is 10% per year compounded quarterly.
| Method | X | Y |
| Initial Cost | 100,000 | 250000 |
| Annual Operation Cost | 30,000 in year one increasing by 5000 each year | 20,000 |
| Salvage Value | 0 | 0 |
| Estimated Life in Year | 3 | 6 |
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Financial Intelligence For IT Professionals
Authors: Julie Bonner
1st Edition
103215294X, 9781032152943
