Question
Annual costs of 3 different systems are provided below. If the MARR is 8%, which system is the least costly of the three? Use incremental
Annual costs of 3 different systems are provided below. If the MARR is 8%, which system is the least costly of the three? Use incremental investment analysis and show all steps.
| Year | System A | System B | System C |
| 0 | $0 | $2,000,000 | $4,000,000 |
| 1 | $9,000,000 | $3,800,000 | $1,900,000 |
| 2 | $9,000,000 | $3,800,000 | $1,900,000 |
| 3 | $9,000,000 | $3,800,000 | $1,900,000 |
| 4 | $9,000,000 | $3,800,000 | $1,900,000 |
| 5 | $9,000,000 | $3,800,000 | $1,900,000 |
| 6 | $9,000,000 | $3,800,000 | $1,900,000 |
| 7 | $9,000,000 | $3,800,000 | $1,900,000 |
| 8 | $9,000,000 | $3,800,000 | $1,900,000 |
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Computational Finance And Its Applications
Authors: C. A. Brebbia, M. Costantino
1st Edition
1853127094, 978-1853127090
