Assume a life of 20 years and a MARR of 10% per year to determine which alternative is best using an incremental rate of return analysis. Operating Cost, Annual Income, First Cost, Alternative -1000 -500 +5000 +8000 46,000 -61.000 Both Alternatives A and B Alternative A Can not tell (More analysis is needed) Alternative B
Assume a life of 20 years and a MARR of 10% per year to determine which alternative is best using an incremental rate of return analysis. Operating Cost, Annual Income, First Cost, Alternative -1000 -500 +5000 +8000 46,000 -61.000 Both Alternatives A and B Alternative A Can not tell (More analysis is needed) Alternative B
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Assume a life of 20 years and a MARR of 10% per year to determine which alternative is best using an incremental rate of return analysis.
Annual
Operating
Cost,
First Cost,
Income,
Alternative
-1000
-500
+5000
+8000
-46,000
B.
-61,000
Both Alternatives A and B
Alternative A
Can not tell (More analysis is needed)
Alternative B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b7dc2c9-0f65-43dd-8aae-056143692b57%2Fd592f160-7e87-4f84-ac97-d11fcdc85cbe%2Fxhou3t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume a life of 20 years and a MARR of 10% per year to determine which alternative is best using an incremental rate of return analysis.
Annual
Operating
Cost,
First Cost,
Income,
Alternative
-1000
-500
+5000
+8000
-46,000
B.
-61,000
Both Alternatives A and B
Alternative A
Can not tell (More analysis is needed)
Alternative B
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