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CE 463 Handout Problem #1 A firm with a MARR of 15% is considering two options for a facility. 1st Cost Annual Benefits Salvage Value

CE 463 Handout Problem #1 A firm with a MARR of 15% is considering two options for a facility. 1st Cost Annual Benefits Salvage Value Option #1 $125,000 $63,000 Option #2 $235,000 S90,000 0 4 LIFE, years Assuming like replacement, use EUA(B-C) to determine the option that should be chosen if 1) The firm plans to keep the facility open for 12 years 2) The firm plans to keep the facility open for only 7 years

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