11-7. Jackson has decided to invest some money and he has two plans in mind. Determine the range of investment for plan B (i.e. min. value < X < max. value) that would convince an investor to select plan B. MARR is 12% per year and other relevant data are shown in the table below. State clearly any assumptions that are necessary to support your answer. (11.2) Plan A Plan B Capital investment $58,000 $3,000 $2,800 $X $2,500 $5,000 Annual receipts Market value Useful life 4 years 6 years

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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11-7. Jackson has decided to invest some money and
he has two plans in mind. Determine the range of
investment for plan B (i.e. min. value < X < max.
value) that would convince an investor to select plan
B. MARR is 12% per year and other relevant data are
shown in the table below. State clearly any assumptions
that are necessary to support your answer. (11.2)
Plan A
Plan B
Capital investment $58,000
Annual receipts
Market value
$3,000
$2,800
4 years 6 years
$X
$2,500
$5,000
Useful life
Transcribed Image Text:11-7. Jackson has decided to invest some money and he has two plans in mind. Determine the range of investment for plan B (i.e. min. value < X < max. value) that would convince an investor to select plan B. MARR is 12% per year and other relevant data are shown in the table below. State clearly any assumptions that are necessary to support your answer. (11.2) Plan A Plan B Capital investment $58,000 Annual receipts Market value $3,000 $2,800 4 years 6 years $X $2,500 $5,000 Useful life
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