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What is the present worth difference between an investment of $35000 per year for

 What is the present worth difference between an investment of $35,000 per year for 45 years and a forever at an interest rate of 14% per year? The difference is determined to be $ Two methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $760,000, an AOC of $240,000 per year, and $115,000 salvage value after its 3-year life. Method 2 will cost $870,000 with an AOC of $115,000 and a $210,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the salvage value of Method 2 will be 38% higher after three years than it is after five years. If the MARR is 12 % per year, which method should the company select? The company should selectClick to select)

Feb 01 2020 View more View Less

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