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Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. a. Which
Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. a. Which environmental protection equipment alternative should be selected? The firm's MARR is 20% per year. Assume the equipment will be needed indefinitely. Assume repeatability is appropriate for this comparison b. Assume the study period is shortened to five years. The market value of Alternative B after five years is estimated to be $18,000. Which alternative would you recommend? Assume repeatability is appropriate for this comparison Click the icon to view the alternatives description Click the icon to view the interest and annuity table for discrete compounding when i = 20% per year. 2 Capital investment Annual expenses Market value at the end of useful life Useful life Alternative A $20,000 5,750 1,000 5 years Alternative B $34,000 4,000 4,300 10 years a. The AW of the alternative A is $ - 11,800(Round to the nearest hundreds.) The AW of the alternative B is $ - 12,900 (Round to the nearest hundreds.) Which alternative would you recommend? Choose the correct answer below. Alternative B Alternative A b. The AW of the alternative A is $ - 11,800. (Round to the nearest hundreds.) The AW of the alternative B is $ - 14,800 (Round to the nearest hundreds.) Which alternative would you recommend? Choose the correct answer below. Alternative A Alternative B
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