6-86. Consider the mutually exclusive alternatives given in the table below. The MARR is 10% per year.

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6-86. Consider the mutually exclusive alternatives given in the table below. The MARR is 10% per year.

Alternative X Y Z Capital $500,000 $250,000 $400,000 investment

(thousands)

Uniform annual $131,900 $40,690 $44,050 savings

(thousands)

Useful life 5 10 20 Assuming repeatability, which alternative should the company select? (6.5)

(a) Alternative X

(b) Alternative Y

(c) Alternative Z

(d) Do nothing

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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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