Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year Lead Acid $6,000 $2,250 Capital investment Annual expenses Useful life Market value at end of useful life Click the icon to view the interest and annuity table for discrete compounding when /= 6% per year. Which alternative should be selected? Choose the correct answer below O Lithium lon Lead Acid FED (b) Determine which alternative should be selected based on the AW method, also assuming repeatability The AW of the Lead Acid is $ (Round to the nearest dollar) The AW of the Lithium Ion is $ (Round to the nearest dollar) Which alternative should be selected? Choose the correct answer below O Lithium lon 4 years $0 (a) Determine which alternative should be selected based on the PW method Assume repeatability and use a study period of 12 years (Round to the nearest dollar) The PW of the Lead Acid is $ The PW of the Lithium lon is $ (Round to the nearest dollar) Lithium lon $12,000 $2,200 6 years $2,800
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year Lead Acid $6,000 $2,250 Capital investment Annual expenses Useful life Market value at end of useful life Click the icon to view the interest and annuity table for discrete compounding when /= 6% per year. Which alternative should be selected? Choose the correct answer below O Lithium lon Lead Acid FED (b) Determine which alternative should be selected based on the AW method, also assuming repeatability The AW of the Lead Acid is $ (Round to the nearest dollar) The AW of the Lithium Ion is $ (Round to the nearest dollar) Which alternative should be selected? Choose the correct answer below O Lithium lon 4 years $0 (a) Determine which alternative should be selected based on the PW method Assume repeatability and use a study period of 12 years (Round to the nearest dollar) The PW of the Lead Acid is $ The PW of the Lithium lon is $ (Round to the nearest dollar) Lithium lon $12,000 $2,200 6 years $2,800
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
Section: Chapter Questions
Problem 1PS
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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
Lead Acid
$6,000
$2,250
Click the icon to view the interest and annuity table for discrete compounding when i=6% per year
Capital investment
Annual expenses
Useful life
Market value at end of useful life
Which alternative should be selected? Choose the correct answer below.
Lithium Ion
O Lead Acid
(a) Determine which alternative should be selected based on the PW method Assume repeatability and use a study period of 12 years.
(Round to the nearest dollar)
The PW of the Lead Acid is $
The PW of the Lithium lon is $
(Round to the nearest dollar)
(b) Determine which alternative should be selected based on the AW method, also assuming repeatability
(Round to the nearest dollar)
The AW of the Lead Acid is $
The AW of the Lithium Ion is $
(Round to the nearest dollar)
Which alternative should be selected? Choose the correct answer below.
Lithium Ion
4 years
$0
Lithium Ion
$12,000
$2,200
6 years
$2,800
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