Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of return analysis to determine which alternative should be selected? A B D 4000 2000 1000 639 410 117 15% 20% 10% Cost Annual benefit Rate of return C 6000 761 11% E 9000 785 6%
Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of return analysis to determine which alternative should be selected? A B D 4000 2000 1000 639 410 117 15% 20% 10% Cost Annual benefit Rate of return C 6000 761 11% E 9000 785 6%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use
incremental rate of return analysis to determine which alternative should be selected?
B
D
2000
1000
410
117
20%
10%
Cost
Annual benefit
Rate of return
A
4000
639
15%
C
6000
761
11%
E
9000
785
6%
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