Question: The Ford motor company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment period is four
The Ford motor company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment period is four years (equal lives), and the MARR is 12% per year. Data for fixturing costs of the systems are given below.
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Which alternative should the company select?
(a) Alternative A
(b) Alternative B
(c) Alternative C
(d) Do nothing
Annual Receipts Capital Lss Salvage Alternative RR Investment Expenses Value 19.2% $12,000 S4.000 $3,000 B 18% $15,800 $5,200 $3,500 23% $8,000 $3.000 $1,500
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