V2 1:25If we calculate AB/C; if it is >1.0, then:Select one:O a.lower cost alternative is selected.O b. higher cost alternative is selected.O C.we eliminate the challenger.O d.we select the defender to compete with the next higher cost alternative.Three mutually exclusive alternatives A, B and C have a service life of 8 years each and the following data: AW of alternative A=$35,000, PW of B = $200,000, and FW of C = $350,000. At an MARR of 10%, which alternative should be selected?Select one:O a.Alternatives BOb. Alternatives CO C.Alternatives A

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If we calculate AB/C; if it is >1.0, then: Select one: a. lower cost alternative is selected. O b. higher cost alternative is selected. Oc. we eliminate the challenger. d. we select the defender to compete with the next higher cost alternative.

If we calculate AB/C; if it is >1.0, then: Select one: a. lower cost alternative is selected. O b. higher cost alternative is selected. Oc. we eliminate the challenger. d. we select the defender to compete with the next higher cost alternative.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1:25
If we calculate AB/C; if it is >1.0, then:
Select one:
O a.
lower cost alternative is selected.
O b. higher cost alternative is selected.
O C.
we eliminate the challenger.
O d.
we select the defender to compete with the next higher cost alternative.
Three mutually exclusive alternatives A, B and C have a service life of 8 years each and the following data: AW of alternative A=
$35,000, PW of B = $200,000, and FW of C = $350,000. At an MARR of 10%, which alternative should be selected?
Select one:
O a.
Alternatives B
Ob. Alternatives C
O C.
Alternatives A

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