Question: Compare three alternative mechanisms to perform some function. The data concerning the alternatives are shown below. The revenues associated with the alternatives are equal and

  1. Compare three alternative mechanisms to perform some function. The data concerning the alternatives are shown below. The revenues associated with the alternatives are equal and are therefore irrelevant to the problem. One and only one of the alternatives must be chosen. Use an incremental present worth method to choose the best one. The MARR is 25%.

Compare three alternative mechanisms to perform some function. The data concerning

  1. A capital investment of $10,000 can be made in a project that will produce a uniform annual revenue of $5,310 for five years and then have a salvage (market) value of $2,000. Annual expenses will be $3,000. The company is willing to accept any project that will earn at least 8% per year on all invested capital. Determine whether this investment project is acceptable by using the method.

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