7.ratio analysis. Interest rate is 4%.For the data below, select the best alternative using the incremental AB/ACInitial costAnnual benefit 45,000Salvage valueLife$230,000$200,00039,00035,000$220,00041,00050,00050,0005 years

A B C Initial Cost -230000 -200000 -220000 Annual Benefit 54000 39000 41000 Salvage value…

7. ratio analysis. Interest rate is 4%. For the data below, select the best alternative using the incremental AB/AC $230,000 Annual benefit 45,000 50,000 5 years B. $200,000 39,000 35,000 $220,000 41,000 50,000 Initial cost Salvage value Life

7. ratio analysis. Interest rate is 4%. For the data below, select the best alternative using the incremental AB/AC $230,000 Annual benefit 45,000 50,000 5 years B. $200,000 39,000 35,000 $220,000 41,000 50,000 Initial cost Salvage value Life

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

7.
ratio analysis. Interest rate is 4%.
For the data below, select the best alternative using the incremental AB/AC
Initial cost
Annual benefit 45,000
Salvage value
Life
$230,000
$200,000
39,000
35,000
$220,000
41,000
50,000
50,000
5 years

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