Consider four mutually exclusive alternatives: Each alternative has a 5-year useful life and no salvage value .

Question:

Consider four mutually exclusive alternatives:

в с D A Cost $75.0 $50.0 $15.0 $90.0 18.8 13.9 4.5 Uniform annual benefit 23.8

Each alternative has a 5-year useful life and no salvage value. The MARR is 10%. Which alternative should be selected, based on

(a) Future worth analysis

(b) Benefit-cost ratio analysis

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... 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...