Question: Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio

Consider three alternatives, each with a 10-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by benefit-cost ratio analysis.

A B $150 Cost $800 $300 Uniform annual benefit 142 60 33.5

Step by Step Solution

★★★★★

3.48 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

BC A 142 PA 10 10800 109 BC B 60 PA 10 10300 123 BC C 335 PA 10 1015... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

7-B-E-M (245).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Consider two mutually exclusive alternatives: If the MARR is 8%, which alternative should be selected? Year -$5000 -3000 +4000 2000 +4000 +2000 -$5000 +2000 +2000 +4000

Each alternative has a 10 year useful life with no salvage value; MARR = 20%; any excess capital over selected Initial Cost investment can be invested at 20%. Alternative A B Initial Cost $100,000...

Consider the three alternatives: Which alternative should be selected? (a) If MARR =6%? (b) If MARR =8%? (c) If MARR = 10%? YearA B Do Nothing 0 $100-$150 +30 +43 +30 +43 +30+43 +30 +43 4-30 +43 0 0

i need step wise solution: 2: Consider three alternatives, each with a 6-year useful life (note: there is no Moe). If the MARR is 5.3%, which alternative should be selected? Solve this problem using...

1) Each of the three alternatives shown has a five-year useful life. If the MARR (Minimum Attractive Rate of Return) is 10%, which alternative should be selected? Solve this problem by benefit-cost...

Consider three mutually exclusive alternatives, each with a 1 5 - year useful life. If the MARR is 1 2 % , which alternative should be selected? Solve the problem by benefit - cost ratio analysis 8 0...

1) If we assume that Daniel consumes 5 beers at a local bar every week and he ends up spending $25 each time he goes to the bar. Based on previous years we can predict that his behavior won't change...

Consider three alternatives: *At the end of its useful life, an identical alternative (with the same cost, benefits, and useful life) may be installed. All the alternatives have no salvage value . If...

All the alternatives have no salvage value. If the MARR is 12%, which alternative should be selected? Solve the problem by payback period. Solve the problem by future worth analysis. Solve the...

Use Solver to create a Sensitivity Report for question 29 at the end of Chapter 3 and answer the following questions: a. Is the optimal solution unique? How can you tell? b. Which location is...

Table 4-8 (found on the textbook's Web site) contains variables from the Los Angeles 2008 Zagat Restaurant Guide. The variables are score values out of 30, with 30 being the best. For each restaurant...

Current information for the Healey Company follows: Beginning raw materials inventory $ 14,900 Raw material purchases 57,000 Ending raw materials inventory 16,300 Beginning work in process inventory...

What will be the amount of heat change at constant pressure? a) 223.53 cal b) 371.25 Cal c) 155.8 Cal d) 355.68 Cal 22. What will be the amount of work done in the process ? a) -62.32 Cal b) -140.925...

4. The enthalpies of elements under the following conditions are us 2) Unity at 298K and 1 atm 1) Zero at 298K and 1 atm 4) Unity at 273K and 1 atm 3) Zero at 273K and 1 atm For which one of the...

gH, Eal at STP is expanded so ihat volune is doubled. Hence, work done is a) 22.4 L atm CHEMICAL THERMODYNAMICS d) 1.135 KJ e) 11.2Latm b) 5.61. atm Rakn in a co 15. I mole of an ideal gas A(C, 3R)...

What are the three variables that Fiedlers contingency theory uses to diagnose the favourability of leadership situations, and what does each mean?

A regional infrastructure building and maintenance contractor is trying to decide whether to buy a new compact horizontal directional drilling (HDD) machine now or wait to buy it 2 years from now...

An engineer must recommend one of two rapid prototyping machines for integration into an upgraded manufacturing line. She obtained estimates from salespeople from two companies. Salesman A gave her...

A salesman from Industrial Water Services (IWS), who is trying to get his foot in the door for a large account in Fremont, offered water chlorination equipment for $2.1 million. This is $400,000 more...

A chemical engineer is considering two sizes of pipes, small (S) and large (L), for moving distillate from a refinery to the tank farm. A small pipeline will cost less to purchase (including valves...

As an innovative way to pay for various software packages, a new high-tech service company has offered to pay your company, Custom Computer Services (CCS), in one of three ways: (1) pay $480,000 now,...

Monetary policy affects securities prices by affecting investors' required return increasing the federal deficit affecting firms' capacity to generate earnings