K Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% 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 lon is $ Lead Acid $7,000 $2,250 6 years $0 Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year. Lead Acid Lithium Ion Lithium Ion $13,000 $2,300 (a) Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 18 years. 9 years $2,600 The AW of the Lead Acid is $ The AW of the Lithium lon is $ Which alternative should be selected? Choose the correct answer below. (Round to the nearest dollar.) (Round to the nearest dollar.) (b) Determine which alternative should be selected based on the AW method, also assuming repeatability. (Round to the nearest dollar.) (Round to the nearest dollar.) Which 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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K
Consider the following EOY cash flows for two mutually exclusive
alternatives (one must be chosen). The MARR is 4% 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 $
Click the icon to view the interest and annuity table for discrete
compounding when i = 4% per year.
(a) Determine which alternative should be selected based on the PW
method. Assume repeatability and use a study period of 18 years.
Lead Acid
Lead Acid
$7,000
$2,250
6 years
$0
Lithium Ion
Lithium Ion
$13,000
$2,300
9 years
$2,600
Which alternative should be selected? Choose the correct answer
below.
The AW of the Lead Acid is $
The AW of the Lithium lon is $
Lead Acid
Lithium Ion
(Round to the nearest dollar.)
(Round to the nearest dollar.)
(b) Determine which alternative should be selected based on the
AW method, also assuming repeatability.
. (Round to the nearest dollar.)
(Round to the nearest dollar.)
Which alternative should be selected? Choose the correct answer
below.
Transcribed Image Text:K Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% 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 $ Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year. (a) Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 18 years. Lead Acid Lead Acid $7,000 $2,250 6 years $0 Lithium Ion Lithium Ion $13,000 $2,300 9 years $2,600 Which alternative should be selected? Choose the correct answer below. The AW of the Lead Acid is $ The AW of the Lithium lon is $ Lead Acid Lithium Ion (Round to the nearest dollar.) (Round to the nearest dollar.) (b) Determine which alternative should be selected based on the AW method, also assuming repeatability. . (Round to the nearest dollar.) (Round to the nearest dollar.) Which alternative should be selected? Choose the correct answer below.
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