4. Two mutually exclusive battery systems A and B have been proposed to provide standby power for you plant. These two systems have different useful lives and repeatability cannot be assumed. If the...

Extracted text: 4. Two mutually exclusive battery systems A and B have been proposed to provide standby power for you plant. These two systems have different useful lives and repeatability cannot be assumed. If the analysis period is 6 years. After the useful life of battery system A is over, and a battery system can be leased for $75,000 per year for 3 years payable at the beginning of the lease. Which battery system would you recommend if the company's hurdle rate is 20% A Project $100,000 $4,000 З years $25,000 $240,000 $6,500 6 years $20,000 Initial Cost Annual Maintenance Useful life Market Value at end of useful life