Given the financial data for three alternatives Initial cost EUAB Life ROR A $600 82 10 years 6.1% O True O False B $1,200 196 10 years 10.1% MARR - 8% AROR (B-C) 9.2% The most attractive alternative for a MARR of 8% is Alt. C? C $400 70 10 years 11.7%

Given the financial data for three alternatives Initial cost EUAB Life ROR A $600 82 10 years 6.1% O True O False B $1,200 196 10 years 10.1% MARR - 8% AROR (B-C) 9.2% The most attractive alternative for a MARR of 8% is Alt. C? C $400 70 10 years 11.7%

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

Given the financial data for three alternatives
Initial cost
EUAB
Life
ROR
A
$600
82
10 years
6.1%
O True
O False
B
$1,200
196
10 years
10.1%
MARR - 8%
AROR (B-C) - 9.2%
The most attractive alternative for a MARR of 8% is Alt. C?
C
$400
70
10 years
11.7%

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