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The following four alternative investments are being compared at MARR of 12%. Which investment is the most economical over the service life? Alt. E Alt. Q Alt. Y Alt. M Service life (years) 10 10 10 10 Net PW $645,000 $533,000 $590,000 $495,000 B/C 1.7 2.3 2.0 1.8 Disc payback period (yrs) 9 O A. Alt Q because it has the highest B/C ratio O B. Alt Y because it has the shortest discounted payback period O C. Alt E because it has the highest net PW O D. Alt M because it has the longest discounted payback period

The following four alternative investments are being compared at MARR of 12%. Which investment is the most economical over the service life? Alt. E Alt. Q Alt. Y Alt. M Service life (years) 10 10 10 10 Net PW $645,000 $533,000 $590,000 $495,000 B/C 1.7 2.3 2.0 1.8 Disc payback period (yrs) 9 O A. Alt Q because it has the highest B/C ratio O B. Alt Y because it has the shortest discounted payback period O C. Alt E because it has the highest net PW O D. Alt M because it has the longest discounted payback period

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following four alternative investments are being compared at MARR of 12%. Which investment is the most economical over the service life? Alt. E Alt. Q Alt. Y Alt. M Service life (years) 10 10 10 10 Net PW $645,000 $533,000 $590,000 $495,000 B/C 1.7 2.3 2.0 1.8 Disc payback period (yrs) 6. 9 O A. Alt Q because it has the highest B/C ratio O B. Alt Y because it has the shortest discounted payback period OC. Alt E because it has the highest net PW O D. Alt M because it has the longest discounted payback period
Transcribed Image Text:The following four alternative investments are being compared at MARR of 12%. Which investment is the most economical over the service life? Alt. E Alt. Q Alt. Y Alt. M Service life (years) 10 10 10 10 Net PW $645,000 $533,000 $590,000 $495,000 B/C 1.7 2.3 2.0 1.8 Disc payback period (yrs) 6. 9 O A. Alt Q because it has the highest B/C ratio O B. Alt Y because it has the shortest discounted payback period OC. Alt E because it has the highest net PW O D. Alt M because it has the longest discounted payback period
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