is considering 2 projects, Alternative A and Alternative B, that it anticipates would increase the energy efficiency of the

Transcribed Image Text: Joy Co. is considering 2 projects, Alternative A and Alternative B, that it anticipates would increase the energy efficiency of the
facility where it produces its rainbow-colored party supplies. Note that it may also choose to forgo any upgrades. Joy Co. plans to be
in its current facility for another 5 years, at which point it will sell its remaining assets.
• Alternative A costs $7,500 to install and will produce an estimated annual savings of $2,976. It does not have any salvage value.
• Alternative B costs $22,000 to install and will save $5,700 annually. It has a salvage value of $9,500 at the end of its useful life.
Compute the FW of each alternative, assuming a MARR of 14%.
O toit
Click here to access the TVM Factor Table calculator.
FW
Alternative A
24
Alternative B
%24
Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is +10.
Which of the alternatives should Joy Co. pursue?
Neither
Alternative B
Media
Alternative A

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