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7. A warehouse company found that their faulty roofing system was costing them $15,750 per annum in maintenance, repairs, and damaged goods. They obtained the
7. A warehouse company found that their faulty roofing system was costing them $15,750 per annum in maintenance, repairs, and damaged goods. They obtained the following information on three alternative new roof systems. Use incremental analysis to determine which alternative they should select when their MARR is 12%. (12 points) ALT X ALTY ALT Z Installation Cost $80,000 $ 105,000 $124,000 Annual Maintenance $4,500 $2,000 $500 Annual Savings $15,750 $15,750 $15,750 Net Annual Savings $11,250 $13,750 $15,250 Life Expectancy 15 years 50 years 30 years 7. A warehouse company found that their faulty roofing system was costing them $15,750 per annum in maintenance, repairs, and damaged goods. They obtained the following information on three alternative new roof systems. Use incremental analysis to determine which alternative they should select when their MARR is 12%. (12 points) ALT X ALTY ALT Z Installation Cost $80,000 $ 105,000 $124,000 Annual Maintenance $4,500 $2,000 $500 Annual Savings $15,750 $15,750 $15,750 Net Annual Savings $11,250 $13,750 $15,250 Life Expectancy 15 years 50 years 30 years
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