Answered: An engineer is considering the projects…

An engineer is considering the projects below, all of which can be last indefinitely. If the company’s MARR is 14% per year, determine which two options should be selected using B/C ratio analysis

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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An engineer is considering the projects below, all of which can be last indefinitely. If the company’s MARR is 14% per year, determine which two options should be selected using B/C ratio analysis

First Cost
Annual Income
Total benefit
Total Cost
B/C ratio
A
2000
300
1000
200
C
1500
280
7000
1050
E
5000
600

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