Consider the following mutually exclusive investment alternatives (MARR= 10%/year) Alternative A Alternative B First cost

Subject:EconomicsPrice:9.82 Bought3

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Consider the following mutually exclusive investment alternatives (MARR= 10%/year) Alternative A Alternative B First cost. 3005 First cost: 10.000.000$ Outflows: 400.000$ in the 1" year, Revenues: 500.000$/year starting from the decreasing with 30.000$ each year till the 3"d year till the end of the life end of the life Salvage value: 30.000$ Salvage value: 30.0005 Estimated Life: 4years Estimated Life: 6years Compare the alternatives based on PW. Which one is better? (20 points)