8-28. Two mutually exclusive alternatives are being considered. The MARR is 15% per year. General inflation is

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8-28. Two mutually exclusive alternatives are being considered. The MARR is 15% per year. General inflation is 5.5%/year. Based on the data below, perform an appropriate analysis to select the most economical alternative. State your assumptions. (8.3) Parameter Alternative A Alternative B Initial investment $150,000 $240,000 Annual revenue (actual $) $39,000 $50,000 Annual cost (actual $) $5,000 in year 1 increasing by $500 each year for remaining years $6,000 Market value at end of useful life (year 0 $) $25,000 $40,000 Useful life, years 6 8

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Engineering Economy

ISBN: 9780134870069

17th Edition

Authors: William Sullivan, Elin Wicks, C Koelling

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