Question: (a) Construct a choice table for interest rates from (b) MARR = 15%. Using incremental rate of retum analysis, which alternative, if any, should the

(a) Construct a choice table for interest rates from (b) MARR

(a) Construct a choice table for interest rates from (b) MARR = 15%. Using incremental rate of retum analysis, which alternative, if any, should the 8-19 Andrews Manufacturing offers three models for one of its products to its customers. You have been asked to analyze the choices from the customer's perspec- tive. Which model should a customer choose if each model has a life of 12 years? Doing nothing is an alternative. Alternative Deluxe Regular Economy First cost $220,000 $125,000 Annual benefit 79,000 43,000 Maintenance and 38,000 13,000 operating costs Salvage value 16,000 6,900 0% to 100%. customer choose? $75,000 28.000 8,000 3,000

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