Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year. Capital investment Annual expenses Useful life Market value at end of useful life Lead Acid Lithium Ion $5,000 $14,000 $2,250 $2,400 12 years 18 years $0 $2,600 year. Click the icon to view the interest and annuity table for discrete compounding when i = 6% per Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 36 years. The PW of the Lead Acid is $ - 60000. (Round to the nearest hundreds.) The PW of the Lithium Ion is $ - 42000. (Round to the nearest hundreds.) Which alternative should be selected? Choose the correct answer below. ○ Lithium Ion Lead Acid
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year. Capital investment Annual expenses Useful life Market value at end of useful life Lead Acid Lithium Ion $5,000 $14,000 $2,250 $2,400 12 years 18 years $0 $2,600 year. Click the icon to view the interest and annuity table for discrete compounding when i = 6% per Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 36 years. The PW of the Lead Acid is $ - 60000. (Round to the nearest hundreds.) The PW of the Lithium Ion is $ - 42000. (Round to the nearest hundreds.) Which alternative should be selected? Choose the correct answer below. ○ Lithium Ion Lead Acid
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen).
The MARR is 6% per year.
Capital investment
Annual expenses
Useful life
Market value at end of useful life
Lead Acid
Lithium Ion
$5,000
$14,000
$2,250
$2,400
12 years
18 years
$0
$2,600
year.
Click the icon to view the interest and annuity table for discrete compounding when i = 6% per
Determine which alternative should be selected based on the PW method. Assume repeatability and
use a study period of 36 years.
The PW of the Lead Acid is $ - 60000. (Round to the nearest hundreds.)
The PW of the Lithium Ion is $ - 42000. (Round to the nearest hundreds.)
Which alternative should be selected? Choose the correct answer below.
○ Lithium Ion
Lead Acid
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