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8.5 Consider three mutually exclusive design alternatives. The following table shows the estimated cash ows for each alternative. The MARR is 20% per year. Conduct
8.5 Consider three mutually exclusive design alternatives. The following table shows the estimated cash ows for each alternative. The MARR is 20% per year. Conduct the incremental analysis by constructing the necessary tables using the given information. Which alternative is the best among the three alternatives? Investment cost $28,000 $55,000 $40,000 Annual expenses $15,000 $13,000 $22,000 Annual revenues $23,000 $28,000 $32,000 Market value $6,000 $8,000 $10,000 Useful life 10 years 10 years 10 years 26.4% 24.7% 22.4% 17 Choose the appropriate increment in the following table for your analysis: Increment A(C-A) A(B-A) A(A-B) A(B-C) considered M
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