MARR = 5% for Q3

Question #7 (10 Points): Using a MARR of 15% a) Using benefit cost ratio analysis, which of the following should be selected? Y Z Initial cost 740 370 220 Annual Benefits 140 100 Salvage Value 50 100 Useful Life in years 10 10 10 40 0 b) Compute the payback for the alternatives in Q3 Answer: Question #3 (5 Points): Answer: In your term project, you had to deal with multiple rates (inflation, borrowing, investing etc...). What rate did you chose as your MARR to discount the cash flows and why