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A cost analysis is to be made to determine what, if anything, should be done in a situation offering three do something and one do-nothing
A cost analysis is to be made to determine what, if anything, should be done in a situation offering three "do something" and one "do-nothing" alternatives. Estimates of the costs and benefits are as follows: First Alternatives Cost End-of- Uniform Useful- Useful Annual Life Life Benefit Salvage (years) Value 1 1 -$500 $135 5 2 -600 100 250 5 3 -700 100 180 10 4 0 0 0 0 Use Present Worth Analysis with the Least Common Multiple Method to select the best alternative. Use MARR=6%. (Note: You MUST describe your answers with conversion factor notations and you DON'T NEED TO calculate the values of PW for supporting a decision. Simply describe your selection criterion with PW expressions.) A cost analysis is to be made to determine what, if anything, should be done in a situation offering three "do something" and one "do-nothing" alternatives. Estimates of the costs and benefits are as follows: First Alternatives Cost End-of- Uniform Useful- Useful Annual Life Life Benefit Salvage (years) Value 1 1 -$500 $135 5 2 -600 100 250 5 3 -700 100 180 10 4 0 0 0 0 Use Present Worth Analysis with the Least Common Multiple Method to select the best alternative. Use MARR=6%. (Note: You MUST describe your answers with conversion factor notations and you DON'T NEED TO calculate the values of PW for supporting a decision. Simply describe your selection criterion with PW expressions.)
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