Question: Use the CW method to determine which mutually exclusive bridge design (L or H) to recommend, based on the data provided in the accompanying table. The MARR is 15% per year.
Bridge Bridge
Design L Design H
Capital investment $274,000 $326,000
Annual expense $10,000 $8,000
Periodic upgrade cost $50,000 $42,000
(every sixth (every seventh
year) year)
Market value 0 0
Useful life (years) 83 92