If are you and to Company decide More than 2 alternatives of is frying investment Worth while, compare Alternative: A > Incremental analysis (Alternative) B C if the additional increment pairs then B vs C MARR A Company at Considering 2 different machines at 12% Both life spans = 10 years M/C ✗ м/с у Initial Cost 160000 285000 Annual Operating Cost 45000 45000 Benefits per year Salvage Value 90000 105000 20000 40000
If are you and to Company decide More than 2 alternatives of is frying investment Worth while, compare Alternative: A > Incremental analysis (Alternative) B C if the additional increment pairs then B vs C MARR A Company at Considering 2 different machines at 12% Both life spans = 10 years M/C ✗ м/с у Initial Cost 160000 285000 Annual Operating Cost 45000 45000 Benefits per year Salvage Value 90000 105000 20000 40000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:If
More
than
2
alternatives
you
are
Company
and
to
decide
of
is
trying
investment
A > Incremental analysis (Alternativ
Alternative: A > Incremental analysis
B
C
if
the
additional
increment
Worth while, compare.
pairs
wins
then
B vs C
A
Company
Considering
2
different
machines
at
MARR
at
12%
Both life
spans
=
10
years
M/C X
M/CY
Initial Cost
160000
285000
Annual Operating Cost
45000
45000
Benefits per year
Salvage Value
90000
105000
20000
40000
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