Question
Data for three mutually exclusive alternatives are given in the table below. For a MARR of 8%, find the preferred alternative using the B/C ratio.
Data for three mutually exclusive alternatives are given in the table below. For a MARR of 8%, find the preferred alternative using the B/C ratio. Assume a life of 7 years for each alternative.
|
| Alt. A | Alt. B | Alt. C |
| Initial Cost | $10K | $40K | $20K |
| Salvage Value | 0 | $10K | $15K |
| EUAB | $2.5K | $7.1K | $3K |
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Corporate Financial Management
Authors: Douglas R. Emery, John D. Finnerty, John D. Stowe
4th Edition
1935938002, 9781935938002
