Q5. A home builder is considering the purchase of a new commercial bulldozer, either AK or BR AK First cost, $ Annual M&O costs, $ Annual benefits, $ Salvage value, $ Project Life, year -6,700 -1,500 4,000 1,000 3 BR -16,900 -1,200 4,500 3,500 6 (i) Construct a choice table for interest rates from 0% to 100%. (ii) If MARR is 8%, which alternative should be selected (use sensitivity analysis method)?

Q5. A home builder is considering the purchase of a new commercial bulldozer, either AK or BR AK First cost, $ Annual M&O costs, $ Annual benefits, $ Salvage value, $ Project Life, year -6,700 -1,500 4,000 1,000 3 BR -16,900 -1,200 4,500 3,500 6 (i) Construct a choice table for interest rates from 0% to 100%. (ii) If MARR is 8%, which alternative should be selected (use sensitivity analysis method)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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