Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 10% per year. Capital investment Annual expenses Useful life Market value at end of useful life The PW of the Lead Acid is $ The PW of the Lithium lon is $ Lead Acid $7,000 $2,750 6 years $0 Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. Lithium lon Lead Acid (a) Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 18 years. The AW of the Lead Acid is $ The AW of the Lithium lon is $ Lithium Ion $11,000 $2,100 (Round to the nearest dollar.) (Round to the nearest dollar.) 9 years $3,000 Which alternative should be selected? Choose the correct answer below. (b) Determine which alternative should be selected based on the AW method, also assuming repeatability. (Round to the nearest dollar.) (Round to the nearest dollar.) Which alternative should be selected? Choose the correct answer below. Lead Acid Lithium Ion

Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 10% per year. Capital investment Annual expenses Useful life Market value at end of useful life The PW of the Lead Acid is $ The PW of the Lithium lon is $ Lead Acid $7,000 $2,750 6 years $0 Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. Lithium lon Lead Acid (a) Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 18 years. The AW of the Lead Acid is $ The AW of the Lithium lon is $ Lithium Ion $11,000 $2,100 (Round to the nearest dollar.) (Round to the nearest dollar.) 9 years $3,000 Which alternative should be selected? Choose the correct answer below. (b) Determine which alternative should be selected based on the AW method, also assuming repeatability. (Round to the nearest dollar.) (Round to the nearest dollar.) Which alternative should be selected? Choose the correct answer below. Lead Acid Lithium Ion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the following EOY cash flows for two mutually exclusive alternatives (one
must be chosen). The MARR is 10% per year.
Capital investment
Annual expenses
Useful life
Market value at end of useful life
Lead Acid
$7,000
$2,750
The PW of the Lead Acid is $
The PW of the Lithium lon is $
6 years
$0
Click the icon to view the interest and annuity table for discrete compounding
when i= 10% per year.
Lithium Ion
Lead Acid
(a) Determine which alternative should be selected based on the PW method.
Assume repeatability and use a study period of 18 years.
Lithium Ion
$11,000
$2,100
(Round to the nearest dollar.)
(Round to the nearest dollar.)
9 years
$3,000
Which alternative should be selected? Choose the correct answer below.
The AW of the Lead Acid is $. (Round to the nearest dollar.)
The AW of the Lithium Ion is $. (Round to the nearest dollar.)
(b) Determine which alternative should be selected based on the AW method, also
assuming repeatability.
Which alternative should be selected? Choose the correct answer below.
Lead Acid
Lithium Ion

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