9. Two alternatives with identical benefits are being considered: AB Initial cost $500 $800 Uniform annual cost 200 150 Useful life, in years 8 8 (a) Compute the payback period if Alt. B is purchased rather than Alt. 4. (b) Use a MARR of 10% and benefit-cost ratio analysis to identify the alternative that should be selected.
9. Two alternatives with identical benefits are being considered: AB Initial cost $500 $800 Uniform annual cost 200 150 Useful life, in years 8 8 (a) Compute the payback period if Alt. B is purchased rather than Alt. 4. (b) Use a MARR of 10% and benefit-cost ratio analysis to identify the alternative that should be selected.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![9- Two alternatives with identical benefits are being considered:
AB
$500 $800
150
Initial cost
Uniform annual cost 200
Useful life, in years 8 8
(a) Compute the payback period if Alt. B is purchased rather than Alt. 4.
(b) Use a MARR of 10% and benefit-cost ratio analysis to identify the alternative that should
be selected.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ce2b364-9f1a-4de8-aab8-1c0a698904db%2Fb66c177c-fd7b-42b6-a5db-a6ded2026355%2Ffu6pp2e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:9- Two alternatives with identical benefits are being considered:
AB
$500 $800
150
Initial cost
Uniform annual cost 200
Useful life, in years 8 8
(a) Compute the payback period if Alt. B is purchased rather than Alt. 4.
(b) Use a MARR of 10% and benefit-cost ratio analysis to identify the alternative that should
be selected.
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