Question

Two alternatives are being considered:
A B
Initial cost $500 $800
Uniform annual cost 200 150
Useful life, in years 8 8
Both alternatives provide an identical benefit.
(a) Compute the payback period if Alt. B is purchased rather than Alt. A. (b) Use a MARR of 12% and benefit-cost ratio analysis to identify the alternative that should be selected.


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  • CreatedFebruary 25, 2010
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