An engineer is considering two alternatives (Alternative A and Alternative B) for improving the production. First...
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An engineer is considering two alternatives (Alternative "A" and Alternative "B") for improving the production. First cost (S) Annual Maintenance and Operation Cost ($ per year) Annual Revenues ($ per year) Salvage value (S) Alternative "A" 100,000.00 40,000.00 90,000.00 50,000.00 Alternative "B" 140,000.00 60,000.00 120,000.00 80,000.00 Question: Which alternative (A or B) should be selected on the basis of a Rate of Return analysis if the company's MARR is 20% per year? Use a Four-year study period. An engineer is considering two alternatives (Alternative "A" and Alternative "B") for improving the production. First cost (S) Annual Maintenance and Operation Cost ($ per year) Annual Revenues ($ per year) Salvage value (S) Alternative "A" 100,000.00 40,000.00 90,000.00 50,000.00 Alternative "B" 140,000.00 60,000.00 120,000.00 80,000.00 Question: Which alternative (A or B) should be selected on the basis of a Rate of Return analysis if the company's MARR is 20% per year? Use a Four-year study period.
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Alternative A Alternative B Intial Investment 10000000 140000... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
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