c. AED 534.375 Problems 22 through 24 are based on the following information: A manufacturing company is evaluating three different systems that can enhance energy efficiency. In addition to the cost of the system itself, each system requires an installation cost of $20,000. Additional known information about each of these alternatives is as follows: Cost of system without installation Annual costs Annual savings Alpha Beta Gamma 30,000 50.000 65,000 10,000 8,000 6,000 18,000 19,000 20,000 The useful life of the systerns is 10 years. If none of the systems is economical, the company will not continue with the plan. Use the Rate of Return (RoR) analysis and a MARR of 8% to answer the follow questions: 22. The incremental benefit-cost ratio between Beta and Alpha is closest to: a. 9.6% b. 8.1% 0.7% d. 8% 8%
c. AED 534.375 Problems 22 through 24 are based on the following information: A manufacturing company is evaluating three different systems that can enhance energy efficiency. In addition to the cost of the system itself, each system requires an installation cost of $20,000. Additional known information about each of these alternatives is as follows: Cost of system without installation Annual costs Annual savings Alpha Beta Gamma 30,000 50.000 65,000 10,000 8,000 6,000 18,000 19,000 20,000 The useful life of the systerns is 10 years. If none of the systems is economical, the company will not continue with the plan. Use the Rate of Return (RoR) analysis and a MARR of 8% to answer the follow questions: 22. The incremental benefit-cost ratio between Beta and Alpha is closest to: a. 9.6% b. 8.1% 0.7% d. 8% 8%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no

Transcribed Image Text:c. AED 534.375
Problems 22 through 24 are based on the following information:
A manufacturing company is evaluating three different systems that can enhance energy efficiency. In
addition to the cost of the system itself, each system requires an installation cost of $20,000. Additional
known information about each of these alternatives is as follows:
Cost of system without installation
Annual costs
Annual savings
Alpha
Beta
Gamma
30,000
50.000
65,000
10,000
8,000
6,000
18,000
19,000
20,000
The useful life of the systerns is 10 years. If none of the systems is economical, the company will not
continue with the plan. Use the Rate of Return (RoR) analysis and a MARR of 8% to answer the follow
questions:
22. The incremental benefit-cost ratio between Beta and Alpha is closest to:
a. 9.6%
b. 8.1%
0.7%
d. 8%
8%
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education