The General Hospital is evaluating new office equipment offered by four companies. The useful life of the equipment is 4 years. First cost Maintenance and operating cost (annual) Annual benefit Salvage value Select one: Company A $15,000 1,600 OC-D-B-A 8,000 3,000 Company B $18,000 1,100 O A-B-C-D O All other answers are wrong O D-C-B-A O A-B-D-C 9,000 3,500 Company C $25,000 400 13,000 6,000 When doing an incremental analysis looking at it from an investment perspective the companies need to be ranked as follows Company D $20,000 900 11,000 4,500

The General Hospital is evaluating new office equipment offered by four companies. The useful life of the equipment is 4 years. First cost Maintenance and operating cost (annual) Annual benefit Salvage value Select one: Company A $15,000 1,600 OC-D-B-A 8,000 3,000 Company B $18,000 1,100 O A-B-C-D O All other answers are wrong O D-C-B-A O A-B-D-C 9,000 3,500 Company C $25,000 400 13,000 6,000 When doing an incremental analysis looking at it from an investment perspective the companies need to be ranked as follows Company D $20,000 900 11,000 4,500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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