ear. Capital investment Annual expenses Useful life Market value at end of useful life Lead Acid $7,000 $2,500 12 years $0 PW of the Lead Acid is $ PW of the Lithium lon is $ Lithium Ion $12,000 $2,200 Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. 18 years $2,800 Determine which alternative should be selected based on the PW method. Assume repeatability and use d of 36 years. (Round to the nearest dollar.) (Round to the nearest dollar.) h alternative should be selected? Choose the correct answer below.
ear. Capital investment Annual expenses Useful life Market value at end of useful life Lead Acid $7,000 $2,500 12 years $0 PW of the Lead Acid is $ PW of the Lithium lon is $ Lithium Ion $12,000 $2,200 Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. 18 years $2,800 Determine which alternative should be selected based on the PW method. Assume repeatability and use d of 36 years. (Round to the nearest dollar.) (Round to the nearest dollar.) h alternative should be selected? Choose the correct answer below.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:(b) Determine which alternative should be selected based on the AW method, also assuming repeatability.
The AW of the Lead Acid is $
The AW of the Lithium Ion is $
(Round to the nearest dollar.)
(Round to the nearest dollar.)
Which alternative should be selected? Choose the correct answer below.
Lithium Ion
Lead Acid
Transcribed Image Text: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 Ion is $
Lead Acid Lithium Ion
$12,000
$2,200
Lithium Ion
Lead Acid
$7,000
$2,500
Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year.
(Round to the nearest dollar.)
(Round to the nearest dollar.)
12 years
$0
(a) Determine which alternative should be selected based on the PW method. Assume repeatability and use a study
period of 36 years.
18 years
$2,800
Which alternative should be selected? Choose the correct answer below.
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