Enginering Economic Analysis Questions!

Given a MARR of 10%, determine the rate of return associated with each individual plan and the incremental rate of retum on the additional investment if the higher cost alternative is selected. Each has an expected life of ten years. Plan First Cost $220.000 $265,000 51,000 Annual Benefit 39,000 IRR1 - 14.1%, IRR2 = 23.4%, Incremental IRR - 12.0% IRR - 12.0%, IRR2 = 23.4%, Incremental IRR - 14.1% IRR - 12.0%, IRR2 - 14.1%, Incremental IRR - 23.4% IRR, - 14.1%, IRR2 - 12.0%, Incremental IRR - 23.4% A company purchased equipment costing $550,000 with a salvage value of $50,000 after its 10-year useful life. The company uses MACRS depreciation and the IRS allows a 5-year asset recovery period for the equipment in question. Determine the amount of the depreciation charge taken by the company in year 4 and the book value at the end of year 4. DA - $100,000 and BV4 - $150,000 None of the above. Da = $105,600 and BV4 = $158,400 D - $63,600 and BV4 - $31,680