Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% per year. Lead Acid Capital investment $7,000 Lithium lon $14,000 Annual expenses $2,500 $2,300 Useful life 12 years 18 years Market value at end of useful life $0 $2,800 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 if the repeatability assumption applies. The AW of the Lead Acid is $ - 3246. (Round to the nearest dollar.) The AW of the Lithium Ion is $ -3,297. (Round to the nearest dollar.) Which alternative should be selected? Choose the correct answer below. Lead Acid Lithium Ion b. Determine which alternative should be selected if the analysis period is 18 years, the repeatability assumption does not apply, and a battery system can be leased for $6,000 per year after the useful life of either battery is over. The PW of the Lead Acid is $ - 50,100. (Round to the nearest hundreds.) The PW of the Lithium Ion is $ (Round to the nearest hundreds.)

Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% per year. Lead Acid Capital investment $7,000 Lithium lon $14,000 Annual expenses $2,500 $2,300 Useful life 12 years 18 years Market value at end of useful life $0 $2,800 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 if the repeatability assumption applies. The AW of the Lead Acid is $ - 3246. (Round to the nearest dollar.) The AW of the Lithium Ion is $ -3,297. (Round to the nearest dollar.) Which alternative should be selected? Choose the correct answer below. Lead Acid Lithium Ion b. Determine which alternative should be selected if the analysis period is 18 years, the repeatability assumption does not apply, and a battery system can be leased for $6,000 per year after the useful life of either battery is over. The PW of the Lead Acid is $ - 50,100. (Round to the nearest hundreds.) The PW of the Lithium Ion is $ (Round to the nearest hundreds.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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