Data for four mutually exclusive alternatives are given in the table below. Assume a life of 7 years and a MARR of 9%, Alt. A Alt. B Alt. C Alt. D Do Nothing Initial Cost $5,600 $3,400 $1,200 SO EUAB $1,400 $1,000 $400 SO Salvage Value $400 SO SO SO Reference: Table 9 The AB /AC ratio for the third increment, (A-B) is OA.0.75 OB. 0.92 OC.0.69 OD.0.84

Data for four mutually exclusive alternatives are given in the table below. Assume a life of 7 years and a MARR of 9%, Alt. A Alt. B Alt. C Alt. D Do Nothing Initial Cost $5,600 $3,400 $1,200 SO EUAB $1,400 $1,000 $400 SO Salvage Value $400 SO SO SO Reference: Table 9 The AB /AC ratio for the third increment, (A-B) is OA.0.75 OB. 0.92 OC.0.69 OD.0.84

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 6E

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