Problem #3 (25 points) What is the investment cost of Alternative 2 that will cause...
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Problem #3 (25 points) What is the investment cost of Alternative 2 that will cause it to breakeven with Alternative I assuming the MARR-12% per year. Further assume cotermination at the end of year five, what is the imputed market value at the end of year five? Stat any other assumptions you make. Show all work. Alt. 1 Alt. 2 Investment cost Annual receipts $3,000 800 SX 1,300 less expenses Salvage value Useful life years 4,000 mAek 7 years 5 years
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