Would love some help on how to approach this - thanks!The cash flows for three different alternatives are given in table below. MARR = 10%.Initial costAnnual benefitsRORLife in yearsA.10.12%Alt. A Alt. B Alt. C$5,000 9,000 7,500$1,457 2,518 2,133A. 10.12%1496 13% 12.4%1. AROR for the first increment (Alt. C-Alt. A) isB.9.38% C. 11.85%52. AROR for the second increment isB.9.38% C. 8.94%D. 11.00%A. Alt. C B. Alt. A C. Alt. BD. 9.87%3. The best alternative for a MARR of 10% using the incremental rate of return analysis isD. Do nothing

The incremental rate of return method is used to check whether the higher-cost alternative is…

Would love some help on how to approach this - thanks! The cash flows for three different alternatives are given in table below. MARR-10%. Initial cost Annual benefits ROR Life in years A.10.1296 Alt. A Alt. B Alt. C A. 10.1296 $5,000 9,000 7,500 $1,457 2,518 2,133 1496 1396 12.4% 1. AROR for the first increment (Alt. C-Alt. A) is B.9.3896 C. 11.85% 5 2. AROR for the second increment is B.9.38% C. 8.9496 B. Alt. A D. 11.00% 3. The best alternative for a MARR of 10% using the incremental rate of return analysis is A. Alt. C D. Do nothing C. Alt. B D. 9.87%

Would love some help on how to approach this - thanks! The cash flows for three different alternatives are given in table below. MARR-10%. Initial cost Annual benefits ROR Life in years A.10.1296 Alt. A Alt. B Alt. C A. 10.1296 $5,000 9,000 7,500 $1,457 2,518 2,133 1496 1396 12.4% 1. AROR for the first increment (Alt. C-Alt. A) is B.9.3896 C. 11.85% 5 2. AROR for the second increment is B.9.38% C. 8.9496 B. Alt. A D. 11.00% 3. The best alternative for a MARR of 10% using the incremental rate of return analysis is A. Alt. C D. Do nothing C. Alt. B D. 9.87%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Subject:eco
Each of the three mutually exclusive alternatives shown has a 5-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis. A B Cost Uniform annual benefit $600.0 158.3 $500.0 138.7 с $200.0 58.3
1. Quinton's refrigerator has just died. He can get a basic refrigerator or a more efficient and environmentally friendly refrigerator with an Energy Star designation. Quinton earns 4% compounded annually on his investments, he wants to consider a 10-year planning horizon, and he will use present worth analysis to determine the best alternative. What is your recommendation? Initial Cost Delivery and installation Professional servicing (year 5) Annual energy costs Salvage value (year 10) Basic Unit 700 60 100 120 150 Energy Star Unit 800 60 100 55 175
Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life. It has a salvage value of $3000 at the end of 10 years. If the MARR is 15 percent, what is the present worth of this project?
Given the following three mutually exclusive alternatives, What alternative is preferable, if any, assuming i = 10%? a. Find PWA = $ b. Find PWB = $ c. Find PWC = $ d. Choose Alternative
ANSWER IN COMPLETE SOLUTION.In one stage of its chili canning operation, Ashley Foods, Inc. has decided that any of five devices can be used. The costs of the machines are calculated below, and it is calculated that all machines will have a useful life of 4 years. Determine which computer should be chosen based on a rate of return study if the minimum attractive rate of return is 20 percent per year.
Edinburgh Newcastle £000 £000Franchise fee (year 0) 8,700 7,950New buses (year 0) 4,120 3,890Scrap value (year 5) 110 95Forecast net cash inflowsYear 1 3,780 3,500Year 2 4,150 3,850Year 3 4,550 4,200Year 4 5,120 5,150Year 5 4,900 4,950 calculate the payback period for both the…
please explain so I can understand. Engineering Econ
You need to know if the building of a new warehouse is justified under the following conditions. The proposal is for a warehouse costing $100,000. The warehouse has an expected useful life of 35 years and a net salvage value of $25,000. Annual receipts of $17,000 and maintenance and administrative cost of $6,000/yr.. What is the annual worth at 6% compounded annually? O a. $5673 O b. $2367 O c. $11,250 O d. $4327
please dont provide solution in an image format thank you
Given the following three mutually exclusive alternatives, What alternative is preferable, if any, assuming i = 10%? a. Find PWA = $ b. Find PWB = $ c. Find PWC = $ d. Choose Alternative
please solve with formulas like (F/P, 5% , n) not with the excell.