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show the complete solution, not excel. please use solution. The estimated capital investment and the annual expenses) for four alternative designs of a diesel-powered air
show the complete solution, not excel.
please use solution.
The estimated capital investment and the annual expenses) for four alternative designs of a diesel-powered air compressor are shown below, as well as the estimated market value for each design at the end of the common five-year useful life. The study period is five years, and the MARR is 20% per year. One of the designs must be selected for the compressor, and each design provides the same level of service. On the basis of this information, (a) Determine the preferred design alternative, using the IRR method (b) Show that the FW method (i=MARR), using the incremental analysis procedure, results in the same decision. Design Alternative D1 D2 D3 D4 Capital investment $100,000 $140,600 $148,200 $122.000 Annual expenses 29,000 16,900 14.800 22,100 Useful life (years) 5 5 5 5 Market value 10,000 14.000 25,600 14.000 1 Step by Step Solution
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