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.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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(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:(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
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.
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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