Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:Alternatives B and C are replaced at the end of their useful lives with identical
replacements.
Find the best alternative using MARR = 10%.
Data
Initial Cost
Uniform Annual Benefit
Useful Life
a) Benefit to Cost ratio analysis
b) Payback Period Analysis
Alt. A
$6,00
$150
20
Alt. B
$900
$300
5
Alt. C
$1,800
$450
10
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