You have been asked to choose between two office equipment, which will be needed for 12 years of operation. Equipment A will last 6 years, whereas equipment B will last 12 years. Equipment A costs $9500, has annual costs of $1200, and no salvage value, and should be replaced with an identical equipment at the end of its life. Equipment B costs $15,000, has annual costs of $900, and no salvage value. Perform the incremental rate of return analysis and highlight ΔΔIIR in yellow. Assume MARR = 8%. ( Use Excel to solve )
You have been asked to choose between two office equipment, which will be needed for 12 years of operation. Equipment A will last 6 years, whereas equipment B will last 12 years. Equipment A costs $9500, has annual costs of $1200, and no salvage value, and should be replaced with an identical equipment at the end of its life. Equipment B costs $15,000, has annual costs of $900, and no salvage value. Perform the incremental rate of return analysis and highlight ΔΔIIR in yellow. Assume MARR = 8%. ( Use Excel to solve )
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You have been asked to choose between two office equipment, which will be needed for 12 years of operation. Equipment A will last 6 years, whereas equipment B will last 12 years. Equipment A costs $9500, has annual costs of $1200, and no salvage value, and should be replaced with an identical equipment at the end of its life. Equipment B costs $15,000, has annual costs of $900, and no salvage value. Perform the incremental
( Use Excel to solve )
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