Consider the following alternatives with a life or 8 years with no salvage value and à MARR 9%. Determine the best alternative to be selected using the following methods a. Calculate the payback period and the discounted payback period b. The Future worth c. Benefit-cost ratio Cost Savings Alternative A $ 60 M $14 M Alternative B $50 M $13 M Alternative C $70 M $18.2 M Alternative D $25 M $7 M

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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9. Consider the following alternatives with a life or 8 years with no salvage value and a MARR 9%. Determine
the best alternative to be selected using the following methods
a. Calculate the payback period and the discounted payback period
b. The Future worth
c. Benefit-cost ratio
Cost
Savings
Alternative A Alternative B
$ 60 M
$50 M
$14 M
$13 M
Alternative C
$70 M
$18.2 M
Alternative D
$25 M
$7 M
Transcribed Image Text:9. Consider the following alternatives with a life or 8 years with no salvage value and a MARR 9%. Determine the best alternative to be selected using the following methods a. Calculate the payback period and the discounted payback period b. The Future worth c. Benefit-cost ratio Cost Savings Alternative A Alternative B $ 60 M $50 M $14 M $13 M Alternative C $70 M $18.2 M Alternative D $25 M $7 M
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