Evaluate the two alternatives A and B and decide the economic justified alternative using: Present worth method Annual worth method Future worth method I.R.R method E.R.R Method E.R.R.R method M.A.R.R = 15% , the details of alternatives are shown in the table below Alternatives A B Investments $6,000 $7,500 Useful life (years) 10 5 Annual disbursements $2,500 $3,500

Evaluate the two alternatives A and B and decide the economic justified alternative using: Present worth method Annual worth method Future worth method I.R.R method E.R.R Method E.R.R.R method M.A.R.R = 15% , the details of alternatives are shown in the table below Alternatives A B Investments $6,000 $7,500 Useful life (years) 10 5 Annual disbursements $2,500 $3,500

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

Evaluate the two alternatives A and B and decide the economic justified
alternative using:
Present worth method
Annual worth method
Future worth method
I.R.R method
E.R.R Method
E.R.R.R method
M.A.R.R = 15%
the details of alternatives are shown in the table below
Alternatives
A
Investments
$6,000 $7,500
Useful life (years)
10
Annual disbursements
$2,500 $3,500
Annual revenues
$4,500 $6,000
Salvage values
$500
$1,000

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