Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F442a9d8c-8621-4890-9b8a-97c560d94fe9%2F032d417a-5a54-46a6-a10f-85bb5f4a8b03%2Ftcycahq_processed.png&w=3840&q=75)
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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