Exercise 2 Consider the following alternatives MARR-15% First cost ($) Net cash flow per year ($/year) Salvage value ($)

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Exercise 2 Consider The Following Alternatives Marr 15 First Cost Net Cash Flow Per Year Year Salvage Value 1 (36.9 KiB) Viewed 28 times

Exercise 2 Consider the following alternatives MARR-15% First cost ($) Net cash flow per year ($/year) Salvage value ($) Useful life (years) Alternative 1 Alternative 2 140 000 90 000 27 500 12 000 7500 0 10 10 Alternative 3 120 000 24 000 2 500 10 Which alternative should be selected, based on: 1) Annual worth (A.W) method 2) Internal rate of Return (I.R.R) method