Option 01 has 12 years and option 02 has 8 years of life, and the MARR is 9 percent. Option 02, is not going to be replaced at the end of its useful life and those two options are the only available options to us at the moment (They are unique). Compare 12 years of 01 with 8 years of O2 and find the best option. Option: First Cost ($) Uniform Annual Benefit ($) Salvage Value ($) 01 1,400 245 190 02 900 265.99 0

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
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Option 01 has 12 years and option O2 has 8 years of life, and the MARR is 9 percent. Option
O2, is not going to be replaced at the end of its useful life and those two options are the only
available options to us at the moment (They are unique). Compare 12 years of 01 with 8
years of O2 and find the best option.
Option:
First Cost ($)
Uniform Annual Benefit ($
Salvage Value ($)
01
1,400
245
190
02
900
265.99
0
Transcribed Image Text:Option 01 has 12 years and option O2 has 8 years of life, and the MARR is 9 percent. Option O2, is not going to be replaced at the end of its useful life and those two options are the only available options to us at the moment (They are unique). Compare 12 years of 01 with 8 years of O2 and find the best option. Option: First Cost ($) Uniform Annual Benefit ($ Salvage Value ($) 01 1,400 245 190 02 900 265.99 0
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