Assume a life of 20 years and a MARR of 10% per year to determine which alternative is best using an incremental rate of return analysis. Operating Cost, Annual Income, First Cost, Alternative -1000 -500 +5000 +8000 46,000 -61.000 Both Alternatives A and B Alternative A Can not tell (More analysis is needed) Alternative B

ENGR.ECONOMIC ANALYSIS
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Assume a life of 20 years and a MARR of 10% per year to determine which alternative is best using an incremental rate of return analysis.
Annual
Operating
Cost,
First Cost,
Income,
Alternative
-1000
-500
+5000
+8000
-46,000
B.
-61,000
Both Alternatives A and B
Alternative A
Can not tell (More analysis is needed)
Alternative B
Transcribed Image Text:Assume a life of 20 years and a MARR of 10% per year to determine which alternative is best using an incremental rate of return analysis. Annual Operating Cost, First Cost, Income, Alternative -1000 -500 +5000 +8000 -46,000 B. -61,000 Both Alternatives A and B Alternative A Can not tell (More analysis is needed) Alternative B
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