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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c7b6ff7-99ba-4abd-b19d-e38767e5b82b%2Fd547cd95-b391-4526-b9bc-c1da910751cb%2F8vd399_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
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