6-81. For the following table, assume a MARR of 15% per year and a useful life for...

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6-81. For the following table, assume a MARR of 15%

per year and a useful life for each alternative of eight years which equals the study period. The rank-order of alternatives from least capital investment to greatest capital investment is Z → Y → W → X. Complete the incremental analysis by selecting the preferred alternative.

“Do nothing” is not an option. (6.4)

Z →Y Y→W W→ X

 Capital −$250 −$400 −$550 investment

 Annual cost 70 90 15 savings

 Market 100 50 200 value

 PW(15%) 97 20 ???

(a) Alternative W

(b) Alternative X

(c) Alternative Y

(d) Alternative Z The following mutually exclusive investment alternatives have been presented to you. (See Table P6-82.) The life of all alternatives is 10 years. Use this information to solve problems 6-82 through 6-85. (6.4)

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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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