please answer all with complete solution and draw the cash flow diagram,,, do not use an excel please. thank you.... Two mutually exclusive alternatives are being considered for the environmentalprotection equipment at a petroleum refinery. One of these alternatives must beselected. The firm's MARR is 10% per year. The estimated cash flows for eachalternative are as follows:Alternative AAlternative BCapital InvestmentAnnual Expenses$20,000$38,0005,5001,0004,000Market value at end of4,200useful lifeUseful life5 years10 yearsa. Which alternative period is preferred, based on the repeatability assumption? UseAW Method. (LCM= 10)b. Assume the study period is shortened to five years. The market value ofAlternative B after five years is estimated to be $15,000. Which alternative wouldyou recommend? Use the AW Method.

To find the alternative which is preferred over other , we find annual worth of the cash flows and…

Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. The firm's MARR is 10% per year. The estimated cash flows for each alternative are as follows: Capital Investment Annual Expenses Alternative A $20,000 5,500 Alternative B $38,000 4,000 1.000 1200

Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. The firm's MARR is 10% per year. The estimated cash flows for each alternative are as follows: Capital Investment Annual Expenses Alternative A $20,000 5,500 Alternative B $38,000 4,000 1.000 1200

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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