Five mutually exclusive cost alternatives that have infinite lives are under consideration for decreasing the fruit-bruising rates

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Five mutually exclusive cost alternatives that have infinite lives are under consideration for decreasing the fruit-bruising rates of a thin skin-fruit grading and packing operation (peaches, pears, apricots, etc.). The initial costs and cash flows of each alternative are available. If the MARR is 15% per year, the one alternative to select is:

A B c Initial cost, $ -11,000 – 12,000 -9,000 -14,000 –15,000 D E Alternative Cash flow, $ per year -1000 -900 -1400


(a) A
(b) B
(c) D
(d) E

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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