Refer to Example 6-3. Re-evaluate the recommended alternative if (a) The MARR = 15% per year; (b)
Question:
(a) The MARR = 15% per year;
(b) The selling price is $0.50 per good unit;
(c) Rejected units can be sold as scrap for $0.10 per unit. Evaluate each change individually,
(d) What is the recommended alternative if all three of these changes occur simultaneously?
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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a For a MARR 15 per year P2 is still the recommended alternative The overall ranking of the alternat...View the full answer
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Related Book For 
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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