Given the financial data for four mutually exclusive alternatives in the table below, A C D First cost $15,000 $36,000 $21,200 | 45,000 O &M Cost/ year 1,600 Benefit/year 400 900 1,000 8,000 13,000 9,000 15,000 Salvage value Life in years 3,000 6,000 4,600 10,000 4 a) determine the best alternative using the ncremental rate of return (AROR) analysis. MARR =10%. b) The most attractive alternative for a MARR of 3% is c) The most attractive alternative for a MARR of 11 % is d) The most attractive alternative for a MARR pver 11.7% is
Given the financial data for four mutually exclusive alternatives in the table below, A C D First cost $15,000 $36,000 $21,200 | 45,000 O &M Cost/ year 1,600 Benefit/year 400 900 1,000 8,000 13,000 9,000 15,000 Salvage value Life in years 3,000 6,000 4,600 10,000 4 a) determine the best alternative using the ncremental rate of return (AROR) analysis. MARR =10%. b) The most attractive alternative for a MARR of 3% is c) The most attractive alternative for a MARR of 11 % is d) The most attractive alternative for a MARR pver 11.7% is
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Given the financial data for four mutually exclusive alternatives in the table below,
A
C
$15,000 $36,000
$21,200 45,000
First cost
O &M Cost/ year 1,600
400
900
1,000
Benefit/year
Salvage value
Life in years
8,000
13,000
9,000
15,000
3,000
6,000
4,600
10,000
4
a) determine the best alternative using the
incremental rate of return (AROR) analysis. MARR
=10%.
b) The most attractive alternative for a MARR of
8% is
c) The most attractive alternative for a MARR of
11 % is
d) The most attractive alternative for a MARR
over 11.7% is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d3531bd-00b5-460a-b9e4-26ddda7ae32a%2F4dd4b88f-4230-4800-8849-6f61c41fd82b%2F1rqfv6r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Given the financial data for four mutually exclusive alternatives in the table below,
A
C
$15,000 $36,000
$21,200 45,000
First cost
O &M Cost/ year 1,600
400
900
1,000
Benefit/year
Salvage value
Life in years
8,000
13,000
9,000
15,000
3,000
6,000
4,600
10,000
4
a) determine the best alternative using the
incremental rate of return (AROR) analysis. MARR
=10%.
b) The most attractive alternative for a MARR of
8% is
c) The most attractive alternative for a MARR of
11 % is
d) The most attractive alternative for a MARR
over 11.7% is
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