A business is considering the purchase of one of the following small devices: First Cost Annual Benefit Device A Device B Device C Device D 4,000 800 6,500 8,500 10,500 1,050 1,400 1,550 Each alternative has a 10-year useful life. The business uses a MARR of 8%. Select the closest choice to your solution and ONLY TYPE THE LETTER IN THE BLANK (A, B, C, D). (Q1) The ROR for Alternative A is closet to (Q2) (Q3) A. 17.5% B. 11.2% C. 14.8% D. 13.4% Answer for (Q1): The AROR for the (B-A) Increment is closet to A. 12.5% B. 9.6% C. 10.6% D. 8% Answer for (Q2): The AROR for the (C-B) Increment is closet to A. 8.1% B. 6.8% C. 9% D. 10.6% Answer for (Q3):
A business is considering the purchase of one of the following small devices: First Cost Annual Benefit Device A Device B Device C Device D 4,000 800 6,500 8,500 10,500 1,050 1,400 1,550 Each alternative has a 10-year useful life. The business uses a MARR of 8%. Select the closest choice to your solution and ONLY TYPE THE LETTER IN THE BLANK (A, B, C, D). (Q1) The ROR for Alternative A is closet to (Q2) (Q3) A. 17.5% B. 11.2% C. 14.8% D. 13.4% Answer for (Q1): The AROR for the (B-A) Increment is closet to A. 12.5% B. 9.6% C. 10.6% D. 8% Answer for (Q2): The AROR for the (C-B) Increment is closet to A. 8.1% B. 6.8% C. 9% D. 10.6% Answer for (Q3):
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
Problem 6E: Keith Golding has decided to purchase a personal computer. He has narrowed his choices to two: Brand...
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