The following three mutually exclusive alternatives have no salvage value after 5 years. A B C First cost $2000 $3000 $6000 Uniform annual benefit 597 771 1652 Computed rate of return 15% 9% 11.7% Assuming that "Do-Nothing" is not an option, the choice table for interest rates from 0% to 100% for these alternative will be: Lower Bound (percentage with 2 decimals, or N/A) Minimum attractive Rate of Return Upper Bound (percentage with 2 decimals, or N/A) Selected alternative (A, B, C, or N/A) 0.00% < MARR ≤ % % < MARR ≤ % % < MARR ≤ %
The following three mutually exclusive alternatives have no salvage value after 5 years. A B C First cost $2000 $3000 $6000 Uniform annual benefit 597 771 1652 Computed rate of return 15% 9% 11.7% Assuming that "Do-Nothing" is not an option, the choice table for interest rates from 0% to 100% for these alternative will be: Lower Bound (percentage with 2 decimals, or N/A) Minimum attractive Rate of Return Upper Bound (percentage with 2 decimals, or N/A) Selected alternative (A, B, C, or N/A) 0.00% < MARR ≤ % % < MARR ≤ % % < MARR ≤ %
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following three mutually exclusive alternatives have no salvage value after 5 years.
A B C
First cost $2000 $3000 $6000
Uniform annual benefit 597 771 1652
Computed rate of return 15% 9% 11.7%
Assuming that "Do-Nothing" is not an option, the choice table for interest rates from 0% to 100% for these alternative will be:
Lower Bound (percentage with 2 decimals, or N/A)
Minimum attractive Rate of Return Upper Bound (percentage with 2 decimals, or N/A) Selected alternative (A, B, C, or N/A)
0.00% < MARR ≤
%
% < MARR ≤
%
% < MARR ≤
%
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