Suppose that the annual revenues of Alternative 2 is known with certainty. By how much would the estimate of annual net revenues for Alternative 1 have to vary so that the initial decision based on...

Suppose that the annual revenues of Alternative 2 is known with certainty. By how much would the estimate of annual net revenues for Alternative 1 have to vary so that the initial decision based on these data would be reversed? MARR is 15% per year.

Extracted text: Consider these two alternatives: Alternative 1 Alternative 2 Capital investment $7,000 $6,500 Annual net revenues $1,400 $1,700 Salvage value $(ID x 150) $ID x 100) Useful life 8. years 10 years