Consider four mutually exclusive and a do-nothing alternatives, each having an 10-year useful life: A BcD В First cost $1000 $800 $600|$500 Uniform annual 125 120 100 |125 benefit Salvage value 750 500 250 0 (a) Construct a choice table for interest rates from 0% to 100%. (b) If the minimum attractive rate of return is 8%, which alternative should be selected?

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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8- Consider four mutually exclusive and a do-nothing
15 alternatives, each having an 10-year useful life:
A
В
C
D
First cost
$1000 $800 $600|$500
Uniform annual |125
|120 |100 | 125
benefit
Salvage value
750
500 250 0
(a) Construct a choice table for interest rates from 0%
to 100%.
(b) If the minimum attractive rate of return is 8%,
which alternative should be selected?
Transcribed Image Text:8- Consider four mutually exclusive and a do-nothing 15 alternatives, each having an 10-year useful life: A В C D First cost $1000 $800 $600|$500 Uniform annual |125 |120 |100 | 125 benefit Salvage value 750 500 250 0 (a) Construct a choice table for interest rates from 0% to 100%. (b) If the minimum attractive rate of return is 8%, which alternative should be selected?
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