Question: Solve the following problems using ROR analysis. Show your complete solution procedure including appropriate cash flow diagrams. 1. Warrior Services LLC is considering setting up
Solve the following problems using ROR analysis.
Show your complete solution procedure including appropriate cash flow diagrams.
1. Warrior Services LLC is considering setting up operations in Detroit. Three sites are under consideration and the corresponding cash flows over the 10-year analysis period are shown in the table. Using ROR analysis, determine which site should be selected. Assume a MARR of 5%.
|
| A | B | C |
| First Cost | $700,000 | $850,000 | $650,000 |
| Salvage Value | 0 | 0 | 0 |
| Annual Benefits | $125,000 | $145,000 | $80,000 |
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