The Maxtex Textile Company is considering two mutually exclusive electronic control systems for its textile machines. The investment period is 9 years (equal lives), and the MARR is 18% per year. Data for the systems are given below. Based on the PW method, which alternative should the company select?
Alternative Capital Investment Net Annual Revenues
X $9,500 $4,800
Y $19,000 $6,400
A) The net PW of the alternative X is $____. (Round to the nearest dollar.)
The net PW of the alternative Y is $____. (Round to the nearest dollar.)
Which alternative should the company select? Choose the correct answer below:
A. Alternative Y
B. Alternative X
B) What if the MARR was 8%, instead of 18%?
The net PW of the alternative X is $____. (Round to the nearest dollar.)
The net PW of the alternative Y is $____. (Round to the nearest dollar.)
Which alternative should the company select? Choose the correct answer below:
A. Alternative X
B. Alternative Y