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 $ 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. 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. The AW of the Lead Acid is $ The AW of the Lithium Ion is $ 9 years $2,600 O Lead Acid O Lithium lon Which alternative should be selected? Choose the correct answer below. OLead Acid O Lithium lon (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.

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 $ 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. 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. The AW of the Lead Acid is $ The AW of the Lithium Ion is $ 9 years $2,600 O Lead Acid O Lithium lon Which alternative should be selected? Choose the correct answer below. OLead Acid O Lithium lon (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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