Consider the two mutually exclusive investment projects, which have unequal serv
ID: 1247768 • Letter: C
Question
Consider the two mutually exclusive investment projects, which have unequal service lines:(Use MARR of 10%)
n A1 A2 0 -$900 -$1,800 1 -400 -300 2 -400 -300 3 -400+200 -300 4 -- -300 5 -- -300 6 -- -300 7 -- -300 8 -- -300+500 A) What assumption(s) do yo need in order to compare a set of mutually exclusive investments with unequal service lines? B) With the assumption(s) defined in part A and using <<I think this is where I'm supposed to use MARR of 10%>> determine which project should be selected. C)If your analysis period (study period) is just three years, what should be the salvage value of project A2 at the end of year 3 to make the two alternatives economically indifferent? I know these are the answers but I don't know how to get them... b: $-6,302.62, -$5,334.04
c: $1,066.90
Consider the two mutually exclusive investment projects, which have unequal service lines:
(Use MARR of 10%)
n A1 A2 0 -$900 -$1,800 1 -400 -300 2 -400 -300 3 -400+200 -300 4 -- -300 5 -- -300 6 -- -300 7 -- -300 8 -- -300+500 A) What assumption(s) do yo need in order to compare a set of mutually exclusive investments with unequal service lines? B) With the assumption(s) defined in part A and using <<I think this is where I'm supposed to use MARR of 10%>> determine which project should be selected. C)If your analysis period (study period) is just three years, what should be the salvage value of project A2 at the end of year 3 to make the two alternatives economically indifferent? I know these are the answers but I don't know how to get them... b: $-6,302.62, -$5,334.04
c: $1,066.90
n A1 A2 0 -$900 -$1,800 1 -400 -300 2 -400 -300 3 -400+200 -300 4 -- -300 5 -- -300 6 -- -300 7 -- -300 8 -- -300+500
Explanation / Answer
got it