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Drain Your Brain, a local video arcade, is considering the addition of a new virtual reality system. Several different vendors have been contacted. The owner
Drain Your Brain, a local video arcade, is considering the addition of a new virtual reality system. Several different vendors have been contacted. The owner of the arcade, affectionately referred to by the patrons as Wizard, has narrowed his selection to one of three choices (mutually exclusive altematives). The data below describes the three systems under evaluation. Annual costs are based on electricity consumed, replacement parts based on use, and preventive maintenance. Revenue estimates are provided by the vendors based on regional data and relative thrill as compared to other arcade games and a cost of $1.00 per play . Which method (PW, AW, FW. IRR) would be best (oasiest) to use to select the proferred alternative? b. What is the implicit study period for this problem? c. Which alternative should be selected when MARR is 10%? Click the icon to view the datatable for the additional information about three alternatives. Click the icon to view the interest and annuity table for discrete compounding when tho MARR is 10% per year. a. Which method would be best (easiest) to use to select the preferred alternative? OA AW OB. IRR O C. PW OD. FW b. The implicit study period is years. c. AWA=$(Round to the nearest dollar.) AW, =$(Round to the nearest dollar) AWS (Round to the nearest dollar.) should be selected System C System B System A Cek to soteet your answer(s). - i More Info Initial costs Annual costs Annual revenues Salvage value at end of useful life Useful life System A $13,500 $6,800 $11,200 $1,000 System B $11,000 $5,400 $10,400 $1,000 System $15,500 $7,800 $12,200 $1,000 5 years 4 years 6 years Print Done More Info Single Payment Discrete Compounding: 10 Uniform So Compound Amount Factor To Find Pro Vilarth Factor Tend G A Binding Fund Heater To Find C Rico Factor To Find A GP N FIP 1 2 3 4 5 6 7 8 9 10 1.1000 1.2100 1.3310 1.4841 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 Prusan Worth Factor To Find P GlvonF PF 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 Compound Amount Filter To Find GivenA FA 1.0000 2.1000 3.3100 4,6410 6.1051 7.7156 9.4372 11.4359 13.5795 15.9374 0.9091 117355 2.4869 3.1899 3.7908 413553 4.9684 5.3349 5.7590 6. 1146 1.0000 0,4782 0.3021 0.2165 0.1638 0.1296 O: 1054 010874 0.0736 0.0627 11000 0.5752 0:4021 010155 0.2638 0 2296 0 2054 0.1874 0.1736 021627 Uniform Grant Grant Uniform Pront Sorte Vor Factor To Find Gilvan G AUG 0.0000 0.0000 0.8284 0.4782 2.3291 0.9366 413781 1.3812 6.8618 1.8101 9.8842 2.2238 127631 2.6216 1800287 3.0045 19.4215 3.3724 22.8913 3.7255 Print Dora Done
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