A municipal police department has decided to acquire an unnamed drone for aerial surveillance of a high-crime region in the city. Two drones are being studied and their data are provided in the table below. All alternatives are expected to have negligible salvage values at the end of 5 years. The police department's MARR is 8% per year. Which drone should be selected based ona. RORAI method?b. Annual Worth method?A Alternative Capital investment $740,000 Annual expenses $361,940BAlternative Capital investment 1,840,000 Annual expenses $ 183,810 1. A municipal police department hasdecided to acquire an unnamed drone foraerial surveillance of a high-crime regionin the city. Two drones are being studiedand their data are provided in the tablebelow. All alternatives are expected to havenegligible salvage values at the end of 5years. The police department's MARR is 8%per year. Which drone should be selectedbased ona. RORAI method?b. Annual Worth method?AAlternative Capital investment $740,000Annual expenses $ 361,940Alternative Capital investment 1,840,000Annual expenses $ 183,810

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Answered: 1. A municipal police department has…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A municipal police department has decided to acquire an unnamed drone for aerial surveillance of a high-crime region in the city. Two drones are being studied and their data are provided in the table below. All alternatives are expected to have negligible salvage values at the end of 5 years. The police department's MARR is 8% per year. Which drone should be selected based on a. RORAI method? b. Annual Worth method? A Alternative Capital investment $740,000 Annual expenses $361,940 B Alternative Capital investment 1,840,000 Annual expenses $ 183,810

1. A municipal police department has
decided to acquire an unnamed drone for
aerial surveillance of a high-crime region
in the city. Two drones are being studied
and their data are provided in the table
below. All alternatives are expected to have
negligible salvage values at the end of 5
years. The police department's MARR is 8%
per year. Which drone should be selected
based on
a. RORAI method?
b. Annual Worth method?
A
Alternative Capital investment $740,000
Annual expenses $ 361,940
Alternative Capital investment 1,840,000
Annual expenses $ 183,810

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