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%

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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%
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%
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