01. Two alternatives have the following cash flows:alternativeEnd of YearAB- $2800+ $1100- $20001+ $8002+ $800+ $11003+ $800+ $11004+ $800+ $1100At a minimum attractive rate of return (MARR) 12%, which alternative should be selected? Use the presentand future worth analysis.

Present Values: Net present value of Alternative A = 800(P/A, 12%, 4) - 2000= 800…

01. Two alternatives have the following cash flows: alternative End of Year A B – $2000 + $800 + $800 + $800 + $800 - $2800 + $1100 + $1100 + $1100 + $1100 1 2 3 4 At a minimum attractive rate of return (MARR) 12%, which alternative should be selected? Use the present and future worth analysis.

01. Two alternatives have the following cash flows: alternative End of Year A B – $2000 + $800 + $800 + $800 + $800 - $2800 + $1100 + $1100 + $1100 + $1100 1 2 3 4 At a minimum attractive rate of return (MARR) 12%, which alternative should be selected? Use the present and future worth analysis.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

01. Two alternatives have the following cash flows:
alternative
End of Year
A
B
- $2800
+ $1100
- $2000
1
+ $800
2
+ $800
+ $1100
3
+ $800
+ $1100
4
+ $800
+ $1100
At a minimum attractive rate of return (MARR) 12%, which alternative should be selected? Use the present
and future worth analysis.

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