Question
Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash
Three mutually exclusive earth-moving pieces of equipment are being considered for several large building projects in India over the next five years. The estimated cash flows for each alternative are given below. The construction company's MARR is 15% per year. Fill in the missing parts of the equation set up below for the Caterpillar alternative using the AW method. -$22,000 (Blank 1 /Blank 2 , 15%, 4) + $7000 + $4,000 (Blank 3 /Blank 4 , 15%, 4) Caterpillar Deere Case Capital Investment $22,000 $26,200 $17,000 Net annual revenue $ 7,000 $ 9,500 $ 5,200 Salvage value $ 4,000 $ 5,000 $ 3,500 Useful life 4 years 3 years 5 years
2 points
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