Answer part AAnswer part B The Mwatex Textile Company is considering two mutually exclusive electronic control systems for its texttile machines. The investment period is 6 years (equal lives), and the MARR is 12% per year.Data for the systems are given below. Based on the PW method, which alternative should the company select?O A. Alternative YOB. Alternative XAlternativeXYA). The net PW of the alternative X is $(Round to the nearest dollar.)The net PW of the alternative Y is $. (Round to the nearest dollar.)Which alternative should the company select? Choose the correct answer below.xO A. Alternative XOB. Alternative YB). What if the MARR was 6ştead of 12%?The net PW of the alternative X is $. (Round to the nearest dollar.)The net PW of the alternative Y is $(Round to the nearest dollar.)Which alternative should the company select? Choose the correct answer below.CapitalInvestment$7,000$14,000Net AnnualRevenues$4,800$6,400

Answered: tually exclusive electronic control…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer part A

Answer part B

The Mwatex Textile Company is considering two mutually exclusive electronic control systems for its texttile machines. The investment period is 6 years (equal lives), and the MARR is 12% per year.
Data for the systems are given below. Based on the PW method, which alternative should the company select?
O A. Alternative Y
OB. Alternative X
Alternative
X
Y
A). The net PW of the alternative X is $
(Round to the nearest dollar.)
The net PW of the alternative Y is $. (Round to the nearest dollar.)
Which alternative should the company select? Choose the correct answer below.
x
O A. Alternative X
OB. Alternative Y
B). What if the MARR was 6ştead of 12%?
The net PW of the alternative X is $. (Round to the nearest dollar.)
The net PW of the alternative Y is $
(Round to the nearest dollar.)
Which alternative should the company select? Choose the correct answer below.
Capital
Investment
$7,000
$14,000
Net Annual
Revenues
$4,800
$6,400

Expert Solution

Step 1: Define net present value:-

The present value of a project is calculated using the capital budgeting technique known as net present value. Investors decide whether to accept or reject an investment based on the net present value of the alternatives.

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