Alternative Gravity-fed Vacuum-led Capital investment Annual benefits less costs $800,000 $1,000,000 $106,500 $119,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You have been tasked with recommending one of the mutually exclusive industrial sanitation control systems summarized below. The life of both alternatives is 30 years, and residual salvage values are negligible. Use the benefit–cost ratio method in your analysis. If the MARR is 8% per year, which answer below would you recommend? Solve, (a) Gravity-fed (b) Vacuum-led
(c) Both systems (d) Neither system.

Alternative
Gravity-fed Vacuum-led
Capital investment
Annual benefits less costs
$800,000
$1,000,000
$106,500
$119,000
Transcribed Image Text:Alternative Gravity-fed Vacuum-led Capital investment Annual benefits less costs $800,000 $1,000,000 $106,500 $119,000
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