Two hazardous environment facilities are being evaluated, with the projected life of each facility being ten years. The company uses a minimum attractive rate of return (MARR) of 15% Using incremental net present value, which alternative should be selected? B A $300,000 $25,000 $615,000 $10,000 First Cost O&M Cost $92,000 -$5,000 $158,000 $65,000 Annual Benefit Salvage Value
Two hazardous environment facilities are being evaluated, with the projected life of each facility being ten years. The company uses a minimum attractive rate of return (MARR) of 15% Using incremental net present value, which alternative should be selected? B A $300,000 $25,000 $615,000 $10,000 First Cost O&M Cost $92,000 -$5,000 $158,000 $65,000 Annual Benefit Salvage Value
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:Two hazardous environment facilities are being evaluated, with the projected life of each
facility being ten years. The company uses a minimum attractive rate of return (MARR) of 15%.
Using incremental net present value, which alternative should be selected?
B
$300,000
$25,000
$92,000
-$5,000
A
$615,000
$10,000
$158,000
$65,000
First Cost
O&M Cost
Annual Benefit
Salvage Value
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