Question
If McDonnell manufacturing has a MARR of 20%, inflation of 2.75%, and the company uses present worth analysis with a planning horizon of 15 years
If McDonnell manufacturing has a MARR of 20%, inflation of 2.75%, and the company uses present worth analysis with a planning horizon of 15 years in making economic decisions, which of the following alternatives would be preferred?
Alternative A vs Alternative B
| Initial Cost | $236,000 | $345,000 |
| Annual Operating costs | $64,000 | $38,000 |
| Annual Maintenance costs | $4,000 | $5,000 |
| Salvage Value (EOY 20) | $23,000 | $51,000 |
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Auditors Letter Handbook
Authors: American Bar Association Business Law Section
2nd Edition
161438973X, 978-1614389736
