1) Consider the follows Projects: If MARR= 17%. Recommend the best choice based upon ROR analysis: C -800 190 EOY Initial Cost Annual income Salvage value Life B -1000 250 0 0 10 10 Known ROR 24% 22% Need exact value of the incremental ROR on the last comparison. Others need its reasonable range for proper decision in the process. A -500 140 0 10 18% D -2000 260 0 10 16.9%
1) Consider the follows Projects: If MARR= 17%. Recommend the best choice based upon ROR analysis: C -800 190 EOY Initial Cost Annual income Salvage value Life B -1000 250 0 0 10 10 Known ROR 24% 22% Need exact value of the incremental ROR on the last comparison. Others need its reasonable range for proper decision in the process. A -500 140 0 10 18% D -2000 260 0 10 16.9%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1) Consider the follows Projects: If MARR= 17%. Recommend the best choice based upon ROR analysis:
с
-800
190
EOY
Initial Cost
Annual income
Salvage value
Life
A
-500
140
B
-1000
250
D
-2000
260
0
10
16.9%
0
10
18%
0
10
10
Known ROR
24%
22%
Need exact value of the incremental ROR on the last comparison. Others need its reasonable range for proper decision in
the process.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84db99c2-92c1-46c8-b820-80031e187ed9%2F86c10cc8-b358-4979-be3a-79c4920cf886%2Fb3hdzuf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1) Consider the follows Projects: If MARR= 17%. Recommend the best choice based upon ROR analysis:
с
-800
190
EOY
Initial Cost
Annual income
Salvage value
Life
A
-500
140
B
-1000
250
D
-2000
260
0
10
16.9%
0
10
18%
0
10
10
Known ROR
24%
22%
Need exact value of the incremental ROR on the last comparison. Others need its reasonable range for proper decision in
the process.
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