Data for problems 5 to 8 Data for four mutually exclusive alternatives are given in the table below. Assume a life of 6 years and a MARR of 10%, and EUAB stands for equivalent uniform annual benefit. Alt. A Alt. B Initial Cost $560 $340 EUAB $140 Salvage $40 Value OC1.45 OD079 $100 So Alt. C $120 $40 SO Alt. D Do Nothing SO SO The AB/AC ratio for the third increment, (A-B) is OA094 OB. 0.89

Data for problems 5 to 8 Data for four mutually exclusive alternatives are given in the table below. Assume a life of 6 years and a MARR of 10%, and EUAB stands for equivalent uniform annual benefit. Alt. A Alt. B Initial Cost $560 $340 EUAB $140 Salvage $40 Value OC1.45 OD079 $100 So Alt. C $120 $40 SO Alt. D Do Nothing SO SO The AB/AC ratio for the third increment, (A-B) is OA094 OB. 0.89

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Data for problems 5 to 8
Data for four mutually exclusive alternatives are given in the table below. Assume a life of 6 years and a MARR of 10%, and EUAB stands for equivalent
uniform annual benefit.
Alt. A Alt. B
Initial
Cost
EUAB
$140
Salvage $40
Value
$560 $340
OC1.45
OD079
$100
So
Alt. C
$120
$40
SO
Alt. D
Do
SO
SO
SO
Nothing
The AB/AC ratio for the third increment, (A-B) is
OA 0.94
OB. 0.89

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