Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 10, Problem 8P

(a):

To determine

Calculate the present worth.

(b):

To determine

Calculate the new benefit cos ratio.

(c):

To determine

Calculate the incremental benefit cos ratio.

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Here are the data for an asset that is being considered: Initial cost=$35,000 Salvage value at 5 years=$5000 Rebuild cost at 3 years=$25,000 Annual net cash flow=$22,000 per year What is the ROR for this asset? (You can use the excel function "IRR" for this problem) a)53.0% b)41.0% c)43.9% d)42.8%
Answer the given question. Make sure do not round off answers in the solution, instead just the final answer will be rounded of to two decimal places. 1.
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