Two investment projects are being evaluated based on their payback periods. The first alternative requires an initial investment of $300,000, has gross revenues of $55,000, annual O&M costs of $11,000 and a service life of 15 years What is the project's discounted payback period if the MARR is 8% per year? OA. 12.6 years OB. 74 years OC. 6.3 years OD. 102 years If the second alternative has a payback period of 6 years, which alternative should be preferred based on the payback period? OA. The first alternative OB. The second alternative

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Two investment projects are being evaluated based on their payback periods. The first alternative requires an initial investment of $300,000, has gross revenues of $55,000, annual O&M costs of $11,000 and a
service life of 15 years What is the project's discounted payback period if the MARR is 8% per year?
OA. 12.6 years
OB. 74 years
OC. 6.3 years
OD. 102 years
If the second alternative has a payback period of 6 years, which alternative should be preferred based on the payback period?
OA. The first alternative
OB. The second alternative
Transcribed Image Text:Two investment projects are being evaluated based on their payback periods. The first alternative requires an initial investment of $300,000, has gross revenues of $55,000, annual O&M costs of $11,000 and a service life of 15 years What is the project's discounted payback period if the MARR is 8% per year? OA. 12.6 years OB. 74 years OC. 6.3 years OD. 102 years If the second alternative has a payback period of 6 years, which alternative should be preferred based on the payback period? OA. The first alternative OB. The second alternative
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