Determine under what circumstance design a will be preferred

Reference no: EM13183716

Consider the following two alternative designs. Design A has an initial cost of $300,000 and net annual revenues of $55,000; Design B had an
initial investment of $450,000 and net annual revenues of $80,000. A 10% MARR was used over the 10-year planning horizon. Using sensitivity analysis, determine under what circumstances Design A will be preferred over Design B, and vice versa.

Reference no: EM13183716

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