Consider four mutually exclusive projects each having an 8 year useful life. The costs and benefits of each are given in the following table. Table 1: Cost and benefits of candidate projects Project B Project C $800 $600 $120 $97 $500 $500 Initial/first cost Uniform annual benefit Salvage value Project A $1,000 $122 $750 Project D $500 $122 0 If the MARR= 8%, then which alternative should be selected? You must use a different method to check your answer.

Consider four mutually exclusive projects each having an 8 year useful life. The costs and benefits of each are given in the following table. Table 1: Cost and benefits of candidate projects Project B Project C $800 $600 $120 $97 $500 $500 Initial/first cost Uniform annual benefit Salvage value Project A $1,000 $122 $750 Project D $500 $122 0 If the MARR= 8%, then which alternative should be selected? You must use a different method to check your answer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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