Compare the following investment alternatives using ROR analysis. MARR is %12 per annum. Alternative-A Alternative-B First cost, $ 240,000 450,000 Uniform annual benefit, $ 52,000 84,000 Salvage value, $ 120,000 230,000 Life, year 20 Infinite
Compare the following investment alternatives using ROR analysis. MARR is %12 per annum. Alternative-A Alternative-B First cost, $ 240,000 450,000 Uniform annual benefit, $ 52,000 84,000 Salvage value, $ 120,000 230,000 Life, year 20 Infinite
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Compare the following investment alternatives using ROR analysis. MARR is %12 per annum.
|
Alternative-A |
Alternative-B |
First cost, $ |
240,000 |
450,000 |
Uniform annual benefit, $ |
52,000 |
84,000 |
Salvage value, $ |
120,000 |
230,000 |
Life, year |
20 |
Infinite |
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