Miss Piggy is considering a new investment in a boutique store. She has scouted three locations that could suit her needs. Based on the location her initial cost, annual operations and maintenance, and sales (revenues would also change. Please help Miss Piggy make a decision on the best location to choose using a ROR analysis. Miss Piggy uses a personal MARR of 11% and a 10 year planning horizon. Location A Location B Location C Initial Cost $250,000 $200,000 $300,000 Annual O&M $3,000 $5,000 $2,000 Costs Annual $47,000 $40,000 $45,000 Revenues Individual 11.86% 11.73% 7.15% ROR Question 4 Part E: Provide the incremental Rate of Return for the comparison of Location A and Location B. Provide your answer in the form: 12.34

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Miss Piggy is considering a new investment in a boutique store. She has
Scouted three locations that could suit her needs. Based on the location,
her initial cost, annual operations and maintenance, and sales (revenues)
would also change. Please help Miss Piggy make a decision on the best
location to choose using a ROR analysis. Miss Piggy uses a personal
MARR of 11% and a 10 year planning horizon.
Location A
Location B Location C
Initial Cost
$250,000
$200,000 $300,000
Annual O&M
$3,000
$5,000
$2,000
Costs
Annual
$47,000
$40,000
$45,000
Revenues
Individual
11.86%
11.73%
7.15%
ROR
Question 4 Part E: Provide the incremental Rate of Return for the
comparison of Location A and Location B. Provide your answer in the
form: 12.34
Transcribed Image Text:Miss Piggy is considering a new investment in a boutique store. She has Scouted three locations that could suit her needs. Based on the location, her initial cost, annual operations and maintenance, and sales (revenues) would also change. Please help Miss Piggy make a decision on the best location to choose using a ROR analysis. Miss Piggy uses a personal MARR of 11% and a 10 year planning horizon. Location A Location B Location C Initial Cost $250,000 $200,000 $300,000 Annual O&M $3,000 $5,000 $2,000 Costs Annual $47,000 $40,000 $45,000 Revenues Individual 11.86% 11.73% 7.15% ROR Question 4 Part E: Provide the incremental Rate of Return for the comparison of Location A and Location B. Provide your answer in the form: 12.34
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