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Two types of batteries are being considered for use in electric golf carts at City Country Club will Burnout brand batteries cost $ 3 6

Two types of batteries are being considered for use in electric golf carts at City Country Club will Burnout brand batteries cost $36, have a useful life of 3 years, will cost $100 per year to keep charged, and have a salvage value of $5. Longlasting brand batteries cost $60 each, have a life of 5 years, will cost $88 per year to keep charged, salvage value of $5. If you need to replace the battery every time it stop working, which battery is best City Country Club? The discount rate is 15%. Compute revelant cash flows, compute NPV for each battery and compare EACa to decide.

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