6-56. The two mutually exclusive alternatives shown in the table are available (do nothing is also an

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6-56. The two mutually exclusive alternatives shown in the table are available (“do nothing” is also an option). If the MARR = 15% select the better alternative with an incremental analysis using the IRR method.

Given: IRRA = 24.7% and IRRB = 16.6%. State your assumptions. (6.5)

A B Initial cost –$9,000 –$6,000 Salvage value 300 0 Cash flow (annual) 3,000 2,700 Life (years) 6 3

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Engineering Economy

ISBN: 9781292265001

17th Global Edition

Authors: William G. Sullivan ,Elin M. Wicks ,C. Patrick Koelling

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Question Posted: Oct 25, 2024 11:00 AM

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6-56. The two mutually exclusive alternatives shown in the table are available (do nothing is also an

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Engineering Economy

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