Question
The cash flows for three different alternatives are given in table below. If MARR is set at 8%, determine which is the best alternative? (Please
The cash flows for three different alternatives are given in table below. If MARR is set at 8%, determine which is the best alternative? (Please show work in order to be rated):
Data | Alt. X | Alt. Y | Alt. Z |
Initial Cost , $ | 9,000 | 12,500 | 7,500 |
Net Benefits/ Year , $ | 528 | 1,063 | 510 |
ROR | 7% | 9% | 8% |
Life, Years | 25 | 25 | 25 |
A)Alt Y or Alt Z
B)Alt X
C)Alt Z
D)Alt Y
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Engineering Economic Analysis
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
9th Edition
978-0195168075, 9780195168075
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