4. Consider four mutually exclusive alternatives: A B D Initial Cost, $ $770.00 1406.30 2563.30 Uniform annual benefit, $ per 420.00 830.00 1600.00 year Useful life, years 2 4 8 The analysis period is 8 years. At the end of 2, 4, and 6 years, Alt. A will have an identical replacement. Alternative B will have a single identical replacement at the end of 4 years. Choose the best alternative using incremental ROR analysis with MARR = 7%.
4. Consider four mutually exclusive alternatives: A B D Initial Cost, $ $770.00 1406.30 2563.30 Uniform annual benefit, $ per 420.00 830.00 1600.00 year Useful life, years 2 4 8 The analysis period is 8 years. At the end of 2, 4, and 6 years, Alt. A will have an identical replacement. Alternative B will have a single identical replacement at the end of 4 years. Choose the best alternative using incremental ROR analysis with MARR = 7%.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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6

Transcribed Image Text:4. Consider four mutually exclusive alternatives:
A
B
C
Initial Cost, $
$770.00
1406.30
2563.30
Uniform annual
benefit, $ per
420.00
830.00
1600.00
year
Useful life, years 2
4
8
The analysis period is 8 years. At the end of 2, 4, and 6 years, Alt. A will have an identical
replacement. Alternative B will have a single identical replacement at the end of 4 years.
Choose the best alternative using incremental ROR analysis with MARR = 7%.
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