Assessing Project Worth through Present and Annual Worth
You are considering two mutually exclusive alternatives with different useful lives of 4 and 6 years as shown below. The MARR is 10% per year and the market value is 0 at the end of each useful life.
Capital investment $3,500 $5,000
Annual cash flow 1,255 1,480
Useful life in years 4 6
Determine which alternative to recommend by the PW method and the AW method.© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/business-management/assessing-project-worth-through-present-and-annual-worth-7f05