Three mutually exclusive alternatives may replace the current equipment. Year A B с 012345 -$20,000 -$24,000 -$25,000 10,000 10,000 5,000 5,000 10,000 5,000 5,000 15,000 5,000 10,000 8,000 5,000 5,000 5,000 25,000 (a) Construct a choice table for interest rates from 0% to 100%. (b) If the MARR is 15%, which alternative should be selected?

Three mutually exclusive alternatives may replace the current equipment. Year A B с 012345 -$20,000 -$24,000 -$25,000 10,000 10,000 5,000 5,000 10,000 5,000 5,000 15,000 5,000 10,000 8,000 5,000 5,000 5,000 25,000 (a) Construct a choice table for interest rates from 0% to 100%. (b) If the MARR is 15%, which alternative should be selected?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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