2. An electrical engineer has to choose one brand of light bulbs among four available brands. The following information are available; Brand Cost lifetime A $7 2 years B $9 3 years C $13 4 years D $ 17 5 years Which brand should the engineer select if the MARR is 9% a year?
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To calculate the present worth, we need to discount the future costs of each brand to the present using the given MARR (9% per year). For Brand A: The present worth of Brand A = $7 / (1 + 0.09)^2 = $7 / 1.1881 = $5.89 For Brand B: The present worth of Brand B = Show more…
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