Siven the two following investment alternatives, A and B Alternate end of year Alternate B A 0 -10,000 -15,000 1 7,000 9,000 2 7,000 9.000 3 7,000 9.000 4 7,000 9,000 Given MARR-12%, Which of the following investment decisions should be recommended? o Choose A because it has a lower cost and a positive present worth Choose either A or B becasue they both have positive PW Choose B because it has a positive PW Choose & because the PW of the incremental investment is $1.074

Siven the two following investment alternatives, A and B Alternate end of year Alternate B A 0 -10,000 -15,000 1 7,000 9,000 2 7,000 9.000 3 7,000 9.000 4 7,000 9,000 Given MARR-12%, Which of the following investment decisions should be recommended? o Choose A because it has a lower cost and a positive present worth Choose either A or B becasue they both have positive PW Choose B because it has a positive PW Choose & because the PW of the incremental investment is $1.074

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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