Both alternatives have a useful life of 20 years and no


Consider the following mutually exclusive alternatives:


Alternative A

Alternative B

Capital investment

Net annual receipts

$473,000

$104,100

$1,114,000

$235,000

Both alternatives have a useful life of 20 years and no market value at that time. The MARR is 20 % per year. Determine the annual worth (AW) of the most profitable course of action. (Enter your answer as a number without the dollar sign.)

 

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Finance Basics: Both alternatives have a useful life of 20 years and no
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