Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% per year. Lead Acid Lithium Ion $5,000 $14,000 Capital investment Annual expenses Useful life $2,750 $2,400 18 years 12 years $0 Market value at end of useful life $2,600 Click the icon to view the interest and annuity table for discrete compounding when i=4% per year. 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 $-72734.32. (Round to the nearest hundreds.) The PW of the Lithium Ion is $-206329. (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 4% per year. Lead Acid Lithium Ion $5,000 $14,000 Capital investment Annual expenses Useful life $2,750 $2,400 18 years 12 years $0 Market value at end of useful life $2,600 Click the icon to view the interest and annuity table for discrete compounding when i=4% per year. 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 $-72734.32. (Round to the nearest hundreds.) The PW of the Lithium Ion is $-206329. (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 4% per year.
Lead Acid
Lithium Ion
$5,000
$14,000
Capital investment
Annual expenses
Useful life
$2,750
$2,400
12 years
18 years
Market value at end of useful life
$0
$2,600
Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year.
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 $ - 72734.32. (Round to the nearest hundreds.)
The PW of the Lithium Ion is $206329. (Round to the nearest hundreds.)
Which alternative should be selected? Choose the correct answer below.
Lithium Ion
Lead Acid
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