MARR (Minimum acceptable rate of return) is 12% per year while the re-investment rate is 10% per year. The study period is 20 years. Assume repeatability is appropriate for this comparison. Alternative A $ (101,000) S (6,000) 20 years $ (6,000 ) $ (18,500 ) 10 years Initial capital investment Annual operating expenses Useful life Salvage value None None

MARR (Minimum acceptable rate of return) is 12% per year while the re-investment rate is 10% per year. The study period is 20 years. Assume repeatability is appropriate for this comparison. Alternative A $ (101,000) S (6,000) 20 years $ (6,000 ) $ (18,500 ) 10 years Initial capital investment Annual operating expenses Useful life Salvage value None None

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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