Consider the three small mutually exclusive investment alternatives in the table below. The feasible alternative chosen must provide service for a 10-year period. The MARR is 12% per year, and the market value of each is 0 at the end of useful life. State all assumptions – (Use repeatability and co terminated) you make in your analysis. Which alternative should be chosen? Use the imputed market value technique in alternative C, ɛ = 10% А C Capital investment $2,000 $8,000 $20,000 Annual revenues less 600 2,200 3,600 expenses Useful life (years) 5 10

Consider the three small mutually exclusive investment alternatives in the table below. The feasible alternative chosen must provide service for a 10-year period. The MARR is 12% per year, and the market value of each is 0 at the end of useful life. State all assumptions – (Use repeatability and co terminated) you make in your analysis. Which alternative should be chosen? Use the imputed market value technique in alternative C, ɛ = 10% А C Capital investment $2,000 $8,000 $20,000 Annual revenues less 600 2,200 3,600 expenses Useful life (years) 5 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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am. 117.
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