6-81. For the following table, assume a MARR of 15% per year and a useful life for...
Question:
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
Step by Step Answer:
Engineering Economy
ISBN: 9780134870069
17th Edition
Authors: William Sullivan, Elin Wicks, C Koelling