2. In the design of a new facility, the mutually exclusive alternatives in the table below are under consideration. Assume that the interest rate (MARR) is 15% per year and the analysis period is 10 years. Use the AW method to choose the best of these three design alternatives Capital investment Annual revenue less expenses Market value Useful life (years) Design 1 -$28,000 5,500 1,500 10 Design 2 -$16,000 3,300 0 10 Design 3 -$23,500 4,800 500 10

ENGR.ECONOMIC ANALYSIS
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2.
In the design of a new facility, the mutually exclusive alternatives in the table
below are under consideration. Assume that the interest rate (MARR) is 15%
per year and the analysis period is 10 years. Use the AW method to choose the
best of these three design alternatives
Capital investment
Annual revenue less expenses
Market value
Useful life (years)
Design 1
-$28,000
5,500
1,500
10
Design 2
-$16,000
3,300
0
10
Design 3
-$23,500
4,800
500
10
Transcribed Image Text:2. In the design of a new facility, the mutually exclusive alternatives in the table below are under consideration. Assume that the interest rate (MARR) is 15% per year and the analysis period is 10 years. Use the AW method to choose the best of these three design alternatives Capital investment Annual revenue less expenses Market value Useful life (years) Design 1 -$28,000 5,500 1,500 10 Design 2 -$16,000 3,300 0 10 Design 3 -$23,500 4,800 500 10
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