The MARR is 15%. Three alternatives are available and the associated cash flow is as follow: Year First Cost A B C $1,700 $2,100 $3,750 Annual Benefit Useful Life 2 $1,000 $1,000 $1,000 3 6 Answer the following in this format: 1.23 1. The payback period for Alternative A is 2. The payback period for Alternative B is 3. The payback period for Alternative C is Based on Payback period analysis, Alternative should be selected. (Enter only the letter)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Question
The MARR is 15%. Three alternatives are available and the associated cash flow is as follow:
Year
First Cost
A
B
C
$1,700 $2,100 $3,750
Annual Benefit
Useful Life
2
$1,000 $1,000 $1,000
3
6
Answer the following in this format: 1.23
1. The payback period for Alternative A is
2. The payback period for Alternative B is
3. The payback period for Alternative C is
Based on Payback period analysis, Alternative
should be selected. (Enter only the letter)
Transcribed Image Text:The MARR is 15%. Three alternatives are available and the associated cash flow is as follow: Year First Cost A B C $1,700 $2,100 $3,750 Annual Benefit Useful Life 2 $1,000 $1,000 $1,000 3 6 Answer the following in this format: 1.23 1. The payback period for Alternative A is 2. The payback period for Alternative B is 3. The payback period for Alternative C is Based on Payback period analysis, Alternative should be selected. (Enter only the letter)
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