Question: Two hazardous environment facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows are as follows: The company

Two hazardous environment facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows are as follows:

Alt. B Alt A $615,000 First cost $300.000 Maintenance and 10.000 25,000 Operating cost Annual benefits 158,000 92.000 Sa


The company uses a MARR of 15%. Using rate of return analysis, which alternative should be selected?

Alt. B Alt A $615,000 First cost $300.000 Maintenance and 10.000 25,000 Operating cost Annual benefits 158,000 92.000 Salvage value 65,000 -3,000

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