Consider the five investment alternatives described below. Which alternatives can be eliminated from an incremental ROR analysis by applying short cuts for an investor with a MARR of 10%? Each alternative has a 5-year life and no salvage value. Initial cost (Sk) Alternative ROR (%) A 60 14 45 20 50 18 D. 30 25 75 12 Can eliminate do-nothing and C Can eliminate do-nothing and A Can eliminate do-nothing and E Can eliminate do-nothing only

Consider the five investment alternatives described below. Which alternatives can be eliminated from an incremental ROR analysis by applying short cuts for an investor with a MARR of 10%? Each alternative has a 5-year life and no salvage value. Initial cost (Sk) Alternative ROR (%) A 60 14 45 20 50 18 D. 30 25 75 12 Can eliminate do-nothing and C Can eliminate do-nothing and A Can eliminate do-nothing and E Can eliminate do-nothing only

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the five investment alternatives described below. Which alternatives can be eliminated from an incremental
ROR analysis by applying short cuts for an investor with a MARR of 10%? Each alternative has a 5-year life and no
salvage value.
Initial cost
Alternative
ROR (%)
(Sk)
60
14
45
20
50
18
D
30
25
75
12
Can eliminate do-nothing and C
Can eliminate do-nothing and A
Can eliminate do-nothing and E
Can eliminate do-nothing only

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