4. Consider four mutually exclusive alternatives: Initial Cost, $ A $770.00 Uniform annual benefit, $ per 420.00 year Useful life, years 2 B 1406.30 830.00 4 C 2563.30 1600.00 8 D O 0 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: Initial Cost, $ A $770.00 Uniform annual benefit, $ per 420.00 year Useful life, years 2 B 1406.30 830.00 4 C 2563.30 1600.00 8 D O 0 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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![4. Consider four mutually exclusive alternatives:
Initial Cost, $
A
$770.00
Uniform annual
benefit, $ per 420.00
year
Useful life, years 2
B
1406.30
830.00
4
C
2563.30
1600.00
8
D
0
0
0
The analysis period is 8 years. At the end of 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%.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F74e6b3cb-d1ba-406f-95bc-b2f0a35f9867%2F94135833-ff68-4fd1-b951-254ea2628f1c%2Fv7bicmq_processed.png&w=3840&q=75)
Transcribed Image Text:4. Consider four mutually exclusive alternatives:
Initial Cost, $
A
$770.00
Uniform annual
benefit, $ per 420.00
year
Useful life, years 2
B
1406.30
830.00
4
C
2563.30
1600.00
8
D
0
0
0
The analysis period is 8 years. At the end of 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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