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EGE Cost Analysis Prof. Pawlowski Final Exam-Fall 2021 (15)7.) Determine which alternative should be selected using the Rate of Return Analysis method if the
EGE Cost Analysis Prof. Pawlowski Final Exam-Fall 2021 (15)7.) Determine which alternative should be selected using the Rate of Return Analysis method if the MARR is 7%. The alternatives are not replaced at the end of their useful life. Alternative Cash Flow Useful Life in Year: Initial Cost: $18,000 A 6 Annual Benefits: $2,950 at the end of the first year and increases by $400 each year thereafter Initial Cost: $22,000 B 9 Annual Benefits: $1,000 at the end of the first year and increases by $700 each year thereafter Initial Cost: $25,700 12 C Annual Benefits: $1,000 at the end of the first year and increases by $500 each year thereafter
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