8-6 A firm is considering two alternatives that have no A salvage value. A B Initial cost $10,700 $5500 Uniform annual benefits 2,100 1800 Useful life, in years 8 4 At the end of 4 years, another B may be purchased with the same cost, benefits, and so forth. (a) Construct a choice table for interest rates from 0% to 100%. (b) If the MARR is 10%, which alternative should be selected?

8-6 A firm is considering two alternatives that have no A salvage value. A B Initial cost $10,700 $5500 Uniform annual benefits 2,100 1800 Useful life, in years 8 4 At the end of 4 years, another B may be purchased with the same cost, benefits, and so forth. (a) Construct a choice table for interest rates from 0% to 100%. (b) If the MARR is 10%, which alternative should be selected?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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