initial cost and a known savings each year of the analysis period as shown in the table below. Option C has a known initial cost, but an unknown uniform annual savings. Using a MARR of 8%, determine the required uniform annual savings for Option 3, if Option 3 is to be the best option. Express your answer in $ to the nearest $10. Option A 0 1 2 3 B -10000 -15000 3300 3900 3300 3900 3300 3900 C -20000 ? ?
initial cost and a known savings each year of the analysis period as shown in the table below. Option C has a known initial cost, but an unknown uniform annual savings. Using a MARR of 8%, determine the required uniform annual savings for Option 3, if Option 3 is to be the best option. Express your answer in $ to the nearest $10. Option A 0 1 2 3 B -10000 -15000 3300 3900 3300 3900 3300 3900 C -20000 ? ?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A manufacturing firm is looking to invest in new equipment. Options A and B have a known
initial cost and a known savings each year of the analysis period as shown in the table
below. Option C has a known initial cost, but an unknown uniform annual savings. Using an
MARR of 8%, determine the required uniform annual savings for Option 3, if Option 3 is to
be the best option. Express your answer in $ to the nearest $10.
Option A
0
1
2345
B
с
-10000 15000 -20000
3300 3900
?
3300 3900
?
3300 3900
?
3300 3900
?
3300
3900
?
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