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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