For the three mutually exclusive alternatives below, use a MARR of 15% per year to select the best alternative using (a.) rate of return analysis and (b) Aw analysis on the actual cash flow estimates with MARR=15%. Y Initial cost -5500 -7500 -9500 Salvage Value +300 +400 Annual Cash flow +2000 +3000 +3000 Life , years 3 4
For the three mutually exclusive alternatives below, use a MARR of 15% per year to select the best alternative using (a.) rate of return analysis and (b) Aw analysis on the actual cash flow estimates with MARR=15%. Y Initial cost -5500 -7500 -9500 Salvage Value +300 +400 Annual Cash flow +2000 +3000 +3000 Life , years 3 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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For the three mutually exclusive alternatives below, use a MARR of 15% per year to select the best alternative using (a.)

Transcribed Image Text:For the three mutually exclusive alternatives below, use a MARR of 15% per year to
select the best alternative using (a.) rate of return analysis and (b) Aw analysis on the
actual cash flow estimates with MARR=15%.
Y
Z
Initial cost
-5500
-7500
-9500
Salvage Value
+300
+400
Annual Cash flow
+2000
+3000
+3000
Life , years
3
4
6.
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