The following three mutually exclusive alternatives have no salvage value after 10 years. A B C D First cost $8000 $6000 $6000 $9500 Uniform annual benefit $1750 $1300 $1425 $1900 Computed rate of return 17.5% 17.3% 19.9% 15.1% Assuming that "Do-Nothing" is an option, the choice table for interest rates from 0% to 100% for these alternative will be: Lower Bound (percentage with 1 decimal, or N/A) Minimum attractive Rate of Return Upper Bound (percentage with 1 decimal, or N/A) Selected alternative (A, B, C, D, Z (for Do-Nothing), or N/A) 0.0% < MARR ≤ % % < MARR ≤ % % < MARR ≤ % % < MARR ≤ %
The following three mutually exclusive alternatives have no salvage value after 10 years. A B C D First cost $8000 $6000 $6000 $9500 Uniform annual benefit $1750 $1300 $1425 $1900 Computed rate of return 17.5% 17.3% 19.9% 15.1% Assuming that "Do-Nothing" is an option, the choice table for interest rates from 0% to 100% for these alternative will be: Lower Bound (percentage with 1 decimal, or N/A) Minimum attractive Rate of Return Upper Bound (percentage with 1 decimal, or N/A) Selected alternative (A, B, C, D, Z (for Do-Nothing), or N/A) 0.0% < MARR ≤ % % < MARR ≤ % % < MARR ≤ % % < MARR ≤ %
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The following three mutually exclusive alternatives have no salvage value after 10 years.
| A | B | C | D | |
| First cost | $8000 | $6000 | $6000 | $9500 |
| Uniform annual benefit | $1750 | $1300 | $1425 | $1900 |
| Computed |
17.5% | 17.3% | 19.9% | 15.1% |
Assuming that "Do-Nothing" is an option, the choice table for interest rates from 0% to 100% for these alternative will be:
|
Lower Bound (percentage with 1 decimal, or N/A) |
Minimum attractive Rate of Return | Upper Bound (percentage with 1 decimal, or N/A) | Selected alternative (A, B, C, D, Z (for Do-Nothing), or N/A) |
| 0.0% | < MARR ≤ | % | |
| % | < MARR ≤ | % | |
| % | < MARR ≤ | % | |
| % | < MARR ≤ | % |
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