What should be the salvage value of project at the end

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Reference no: EM13150968

Consider the two mutually exclusive investment projects, which have unequal service lines: (Use MARR of 10%) n A1 A2 0 -$900 -$1,800 1 -400 -300 2 -400 -300 3 -400+200 -300 4 -- -300 5 -- -300 6 -- -300 7 -- -300 8 -- -300+500 a) If your analysis period (study period) is just three years, what should be the salvage value of project A2 at the end of year 3 to make the two alternatives economically indifferent? I think this is the answer but I don't know how to get it a) $1,066.90

Reference no: EM13150968

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