Consider four mutually exclusive alternatives A B C D cost $75 0 $50 0 $15 0 $90 0 uniform annual benifit 18 8 13 9 4 5 23 8 Each alternative has a 5 year useful life and no salvage value The MARR is 10 Which alternative should be slected, based on a) The payback period b) Future worth analysis c) Benefit cost ratio analysis Can you elaborate how you have estimated the FW for each alternative This solution was written by a subject matter expert It's designed to help students like you learn core concepts Anonymous answered this 592 answers Payback period Initial Cost Annual Cashflow Benefit cost ratio PV of future Cashflow Inital Cost FW Net Future Value of all cashflows

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Question: Consider four mutually exclusive alternatives: A B C D cost: $75.0 $50.0 $15.0 $90.0 uniform annual benifit: 18.8 13.9 4.5 23.8 Each alternative has a

Consider four mutually exclusive alternatives: A B C D

cost: $75.0 $50.0 $15.0 $90.0

uniform annual benifit: 18.8 13.9 4.5 23.8

Each alternative has a 5-year useful life and no salvage value. The MARR is 10%. Which alternative should be slected, based on:

a) The payback period

b) Future worth analysis

c) Benefit-cost ratio analysis

Consider four mutually exclusive alternatives: A B C D cost: $75.0 $50.0

Can you elaborate how you have estimated the FW for each alternative?

This solution was written by a subject matter expert. It's designed to help students like you learn core concepts. Anonymous answered this 592 answers Payback period = Initial Cost / Annual Cashflow Benefit-cost ratio = PV of future Cashflow / Inital Cost FW = Net Future Value of all cashflows

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