Consider two alternatives: Assume that Alt. B is not replaced at the end of its useful life.
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Assume that Alt. B is not replaced at the end of its useful life. If the MARR is 10%, what must be the useful life of B to make Alternatives A and B equally desirable?
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 Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
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