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The cash flows for three different alternatives are given in table below. MARR =10% Alt. A Alt. B Alt C. Initial cost $5000 $9000 $7500
The cash flows for three different alternatives are given in table below. MARR =10%
Alt. A | Alt. B | Alt C. | |
Initial cost | $5000 | $9000 | $7500 |
Annual benefits | $1457 | $2,518 | $2,133 |
ROR | 14% | 13% | 12.4% |
Life in years | 5 | 5 | 5 |
?RoR for the first increment (Alt. C-Alt. A) is ___________________. A. 10.12% B. 9.38% C. 11.85% D. 11.00%
The best alternative for a MARR of 10% using the incremental rate of return analysis is ____________. A. Alt. C B. Alt. A C. Alt. B D. Do-nothing
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