Need help on Economics problem
Anonymous
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Economics
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Asked: Nov 7th, 2016
Question description
In the design of a new facility, the mutually exclusive alternatives in the table below are under consideration. Assume that the interest rate (MARR) is 15% per year and the analysis period is 10 years. Use the following methods to choose the best of these three design alternatives
| Design 1 | Design 2 | Design 3 | |
| Capital Investment | $28,000 | $16,000 | $23,500 |
| Annual revenues less expenses | $5,500 | $3,300 | $4,800 |
| Market Value | $1,500 | 0 | $500 |
| Useful life (years) | 10 | 10 | 10 |
- AW method
- FW method
Tutor Answer
Europe(Continental)