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Solve all parts including part C!!! The government of a particular city is considering two mutually exclusive water purification systems for implementation. Doing nothing is
Solve all parts including part C!!!
The government of a particular city is considering two mutually exclusive water purification systems for implementation. Doing nothing is not an option. Refer to the data below to determine which system should be selected, when MARR = 9% per year, and a. Use the AW method b. Use the PW method c. Use rate of return method Alternative System 1 System 2 Capital Investment $100,000 $150,000 Annual revenues $50,000 $70,000 Annual expenses $22,000 $40,000 Market value at end of useful life $20,000 $10000 Useful life (years) 5 10 IRR 16.5% 15.1%Step by Step Solution
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