A plant engineer is considering the two types of solar water heating system given in Table P7.45.

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A plant engineer is considering the two types of solar water heating system given in Table P7.45.
Table P7.45

The firm's MARR is 12%. On the basis of the IRR criterion, which system is the better choice? "Do nothing" is an option.

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...

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Contemporary Engineering Economics

ISBN: 978-0136118480

5th edition

Authors: Chan S. Park

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Question Posted: Apr 21, 2016 06:48 AM

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A plant engineer is considering the two types of solar water heating system given in Table P7.45.

Question:

Initial cost Annual savings Annual maintenance Expected life Salvage valuc Model A 58,000 $900 $150 Model B $12,000 $1.100 $100 20 years 20 years $500 $600

Step by Step Answer:

PW i A 8000 900 150 P A i 20 500 P F i ...View the full answer

Contemporary Engineering Economics

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