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4) Lenske Corporation wants to build a spare parts storage facility in Arizona. A plant engineer dentified four different location options. The initial cost and
4) Lenske Corporation wants to build a spare parts storage facility in Arizona. A plant engineer dentified four different location options. The initial cost and the annual net cash flow estimates are given in the following table. If the MARR is 10%, use incremental ROR analysis to select the economically best location. Initial cost, S Annual cash flow, $ per year Life, years -200,000 22,000 -275,000 35,000 -190,000 19,500 30 -350,000 42,000 30 Answer: B
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