Would love some help on how to approach this - thanks! The cash flows for three different alternatives are given in table below. MARR =10%. Alt. A Alt. B Alt. C Initial cost $5,000 9,000 7,500 Annual benefits $1,457 2,518 2,133 RoR 14% 13% 12.4% Life in years 5 1. ΔRoR for the first increment (Alt. C-Alt. A) is ___________________. A.10.12% B. 9.38% C. 11.85% D. 11.00% 2. ΔRoR for the second increment is ___________________. A. 10.12% B. 9.38% C. 8.94% D. 9.87% 3. The best alternative for a MARR of 10% using the incremental rate of return analysis is ____________. A. Alt. C B. Alt. A C. Alt. B D. Do nothing
Would love some help on how to approach this - thanks!
The cash flows for three different alternatives are given in table below. MARR =10%.
Alt. A Alt. B Alt. C
Initial cost $5,000 9,000 7,500
Annual benefits $1,457 2,518 2,133
RoR 14% 13% 12.4%
Life in years 5
1. ΔRoR for the first increment (Alt. C-Alt. A) is ___________________.
A.10.12% B. 9.38% C. 11.85% D. 11.00%
2. ΔRoR for the second increment is ___________________.
A. 10.12% B. 9.38% C. 8.94% D. 9.87%
3. The best alternative for a MARR of 10% using the incremental
A. Alt. C B. Alt. A C. Alt. B D. Do nothing
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