Question
Each alternative has a 10 year useful life with no salvage value; MARR = 20%; any excess capital over selected Initial Cost investment can
Each alternative has a 10 year useful life with no salvage value; MARR = 20%; any excess capital over selected Initial Cost investment can be invested at 20%. Alternative A B Initial Cost $100,000 $300,000 $500,000 Annual Profit Profit Rate 30% 22% 16% $30,000 $66,000 $80,000 Which alternative should be selected? Use challenger-defender rate of return analysis.
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
132554909, 978-0132554909
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