Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year. Capital investment Annual expenses Lead Acid $5,000 $2,250 Lithium lon $15,000 $2,500 12 years Market value at end of useful life $0 18 years $2,800 Useful life Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. a. Determine which alternative should be selected if the repeatability assumption applies. The AW of the Lead Acid is $ -2847. (Round to the nearest dollar.) The AW of the Lithium Ion is $ - 3795. (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 $7,000 per year after the useful life of either battery is over. The PW of the Lead Acid is $ (Round to the nearest hundreds.)
Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year. Capital investment Annual expenses Lead Acid $5,000 $2,250 Lithium lon $15,000 $2,500 12 years Market value at end of useful life $0 18 years $2,800 Useful life Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. a. Determine which alternative should be selected if the repeatability assumption applies. The AW of the Lead Acid is $ -2847. (Round to the nearest dollar.) The AW of the Lithium Ion is $ - 3795. (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 $7,000 per year after the useful life of either battery is over. The PW of the Lead Acid is $ (Round to the nearest hundreds.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 6% per year.
Capital investment
Annual expenses
Lead Acid
$5,000
$2,250
Lithium lon
$15,000
$2,500
12 years
Market value at end of useful life
$0
18 years
$2,800
Useful life
Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year.
a. Determine which alternative should be selected if the repeatability assumption applies.
The AW of the Lead Acid is $ -2847. (Round to the nearest dollar.)
The AW of the Lithium Ion is $ - 3795. (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 $7,000 per year after the useful life of either battery is over.
The PW of the Lead Acid is $ (Round to the nearest hundreds.)
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