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The Ford Motor Company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment period is four
The Ford Motor Company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment period is four years (equal lives), and the MARR is 10% per year. Data for fixturing costs of the systems are given below. Which alternative should the company select? Annual Receipts Less Salvage Value $3,250 $3,300 $1,400 Capital Alternative IRR Investment Expenses 22.3% 19.3% 15.8% $12,000 $15,800 $8,500 $4,250 $5,400 $2,750 Click the icon to view the interest and annuity table for discrete compounding when 1-10% per year The AW of the alternative A is S(Round to the nearest dollar.)
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