Given the data for three different alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =9%.     A B C First cost $15,000 $25,000 $20,000 O &M Cost/ year 1,600 400 900 Benefit/year 8,000 13,000 9,000 Salvage value 3,000 6,000 4,600 Life in years 4 4 4   The better alternative between the second  increment (B – C) is:. Group of answer choices Alt. B Alt. C Alt. B or Alt. C Alt. A

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Given the data for three different alternatives in the table below, determine the best alternative using the incremental rate of return (∆RoR) analysis. MARR =9%.

 

 

A

B

C

First cost

$15,000

$25,000

$20,000

O &M Cost/ year

1,600

400

900

Benefit/year

8,000

13,000

9,000

Salvage value

3,000

6,000

4,600

Life in years

4

4

4

 

The better alternative between the second  increment (B – C) is:.

Group of answer choices
Alt. B
Alt. C
Alt. B or Alt. C
Alt. A
 
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