Discuss what is the pertinent data

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Reference no: EM131506148

Question: Three mutually exclusive electric-vehicle battery systems are being investigated by a large automobile manufacturer. Pertinent data are given below:

Battery System    A B    C
Initial investment (millions)    $2,000           $8,000          $20,000
Annual receipts less expenses (millions)    600    2,200    3,600
System life (years)                                         5    5 10

a. Use the PW method to select the best battery system. The MARR is 15% per year, and the system chosen must provide service for 10 years. Assume repeatability.

b. Confirm your recommendation in Part A using the IRR method.

Reference no: EM131506148

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