3. Based on the following costs from a retrospective analysis, what is the 2013 value for the three alternatives using a medical consumer price index (MCPI) inflation rate of 3.5% per year? Year 2010 2011 2012 2013 Alernative 1 costs ($) 10,000 30,000 30,000 20,000 Allernative 2 costs ($) 25,000 20,000 15,000 15,000 25,000 Ahernative 3 costs ($) 20,000 20,000 20,000

3. Based on the following costs from a retrospective analysis, what is the 2013 value for the three alternatives using a medical consumer price index (MCPI) inflation rate of 3.5% per year? Year 2010 2011 2012 2013 Alernative 1 costs ($) 10,000 30,000 30,000 20,000 Allernative 2 costs ($) 25,000 20,000 15,000 15,000 25,000 Ahernative 3 costs ($) 20,000 20,000 20,000

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

3. Based on the following costs from a retrospective analysis, what is the 2013 value
for the three alternatives using a medical consumer price index (MCPI) inflation
rate of 3.5% per year?
Year
2010
2011
2012
2013
Alternative 1 costs ($)
10,000
30,000
30,000
20,000
Alternative 2 costs (S)
Ahernative 3 costs ($)
25,000
20,000
15,000
15,000
25,000
20,000
20,000
20,000

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