You are considering three mutually exclusive design alternatives. Do nothing is also an option.

siderin

5%

MARR is 15%.

This is

A

B

pense

enue,

Jue, S

Category

First cost, S Annual Expense, Syr Annual revenue, Syr

Salvage value, S

Useful life, yrs ROR

26,000.

12.500

20,000

5,000

10 26.60%

52,000 12,000

25,000

9,000

10

40,000

21,000

29,000

8,000

10

22.13%

16.30%

me prese

a. What is the present worth of each alternative? Which would you choose?

an incre

b. Perform an incremental analysis using present worth. Which would you choose?

n incre

c. Perform an incremental analysis using rate of return. Which would you choose?

COR to 1

[Calculate ROR to two decimal places (eg, 6.78%) by manual interpolation. Show your factor

work

notation and work]