Project worth through present and annual worth

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Reference no: EM1343455

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.

A B
Capital investment $3,500 $5,000
Annual cash flow 1,255 1,480
Useful life in years 4 6

Evaluate which alternative to recommend by the PW method and the AW method.

Reference no: EM1343455

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