A company has decided to renew the lighting system and it has 4 options. If you know that the project will last for 72 years and MARR is 7%: 1. Systems "A" cost of 35000 € with annual savings of 1200 €, the project life time is 24 years. 2. Systems "B" cost of 40,000 € with annual saving of 2500 €increased by 150 € every year, the project life is 18 years. 3. System "C" cost 50,000 € with annual savings of 2200 € decreased by 50 € every year, the project life is 12 years. 4. System "B" cost 30000 € with annual savings of 30000 € increased by 220 € every year, the project life is 36

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A company has decided to renew the lighting system and it has 4 options. If you know that the project will last for 72 years and
MARR is 7%:
1. Systems "A" cost of 35000 € with annual savings of 1200 €, the project life time is 24 years.
2. Systems "B" cost of 40,000 € with annual saving of 2500 € increased by 150 € every year, the project life is 18 years.
3. System "C" cost 50,000 € with annual savings of 2200 € decreased by 50 € every year, the project life is 12 years.
4. System "B" cost 30000 € with annual savings of 30000 € increased by 220 € every year, the project life is 36
Transcribed Image Text:A company has decided to renew the lighting system and it has 4 options. If you know that the project will last for 72 years and MARR is 7%: 1. Systems "A" cost of 35000 € with annual savings of 1200 €, the project life time is 24 years. 2. Systems "B" cost of 40,000 € with annual saving of 2500 € increased by 150 € every year, the project life is 18 years. 3. System "C" cost 50,000 € with annual savings of 2200 € decreased by 50 € every year, the project life is 12 years. 4. System "B" cost 30000 € with annual savings of 30000 € increased by 220 € every year, the project life is 36
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