Five different methods can be used for recovering  by-product heavy metals from a manufacturing site's liquid waste. The investment costs and incomes associated with each method are shown. Assuming all methods have a 10-year life and the company's MARR is 10% per year, determine which one method should be selected using ROR evaluation.   method 1 method 2 method 3 method 4 method 5 first cost -15000 -18000 -25000 -35000 -52000 annual income  4000 5000 7000 9000 12000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Five different methods can be used for recovering  by-product heavy metals from a manufacturing site's liquid waste. The investment costs and incomes associated with each method are shown. Assuming all methods have a 10-year life and the company's MARR is 10% per year, determine which one method should be selected using ROR evaluation.

  method 1 method 2 method 3 method 4 method 5
first cost -15000 -18000 -25000 -35000 -52000
annual income  4000 5000 7000 9000 12000
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