Question 4Which increment should be examined first in incremental rate of return analysis, if MARR = 9.0%?Do-nothing AFirst costAnnualbenefitLifeRORA-BO A-CO B-COB-A0010 yrs$5,50089510.0%BC$3,000 $7,0005311,16412.0%10.5%D$3,0004086.0%

Alternative selection can be done on the basis of incremental internal rate of return (IRR). For one…

Question 4 Which increment should be examined first in incremental rate of return analysis, if MARR = 9.0%? Do-nothing A B D $3,000 $3,000 531 408 First cost Annual benefit Life ROR O A-B O A-C O B-C OB-A 0 0 10 yrs $5,500 895 C $7,000 1,164 10.0% 12.0% 10.5% 6.0%

Question 4 Which increment should be examined first in incremental rate of return analysis, if MARR = 9.0%? Do-nothing A B D $3,000 $3,000 531 408 First cost Annual benefit Life ROR O A-B O A-C O B-C OB-A 0 0 10 yrs $5,500 895 C $7,000 1,164 10.0% 12.0% 10.5% 6.0%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which increment should be examined first in incremental rate of return analysis, if MARR = 10.0%? Do-nothing A B C D First cost 0 $8,000 $4,500 $8,500 $6,000 Annual 0 1,387 914 1,661 935 benefit Life 10 yrs ROR 11.5% 15.5% 14.5% 9.0% A-B OB-A OA-C OB-C