Given the following information, which of the mutually exclusive alternatives should be chosen? Use the PW and AW methods for all options if the MARR is 10%. Investment cost Annual expenses Annual revenues Salvage value Useful life A 28,000 15,000 23,000 6,000 10 B 55,000 13,000 28,000 8,000 10 C 40,000 22,000 32,000 10,000 10

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Directions: Record the given information, draw the cash flow diagram and solve.
Given the following information, which of the mutually exclusive alternatives should be chosen? Use the
PW and AW methods for all options if the MARR is 10%.
Investment cost
Annual expenses
Annual revenues
Salvage value
Useful life
A
28,000
15,000
23,000
6,000
10
B
55,000
13,000
28,000
8,000
10
с
40,000
22,000
32,000
10,000
10
Transcribed Image Text:Directions: Record the given information, draw the cash flow diagram and solve. Given the following information, which of the mutually exclusive alternatives should be chosen? Use the PW and AW methods for all options if the MARR is 10%. Investment cost Annual expenses Annual revenues Salvage value Useful life A 28,000 15,000 23,000 6,000 10 B 55,000 13,000 28,000 8,000 10 с 40,000 22,000 32,000 10,000 10
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