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without using excel 2. (10 points) ABC has the following two mutually exclusive alternative machines. Based on rate of return (ROR) analysis, using a MARR

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without using excel

2. (10 points) ABC has the following two mutually exclusive alternative machines. Based on rate of return (ROR) analysis, using a MARR (Ai*) of 10%, which machine should be selected? First cost, $ Annual Operating cost $ Salvage value Machine A -10,000 -1,500 2,000 3 Machine B -25.000 -500 6,000 6 Life, years 4. (15 points) The two alternatives shown below are under consideration for improving security at a county jail. Select one based on a B/C analysis using annual worth (AW) values at an interest rate of 7% per year and a 10-year study period. First cost, $ AOC, $ per year Benefits, $ per year Disbenefits, $ per year Extra Cameras (EC) 38,000 49.000 110,000 15.000 New Sensors (NS) 87,000 64,000 165,000 18,000 (Hint: Remember to compare EC to Do Nothing first)

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