The five mutually exclusive alternatives shown below are under consideration for improving visitor safety and access to additional areas of a national park. If all alternatives are considered to last indefinitely, determine which should be selected on the basis of a rate of return analysis using an interest rate of 10%.                                                                      A         B         C         D        E_         First cost, $ millions                          -20      -40      -35     -90      -70         Annual M&O cost, $ millions              -2      -1.5     -1.9      -1.1     -1.3 Note:- Do not provide hand

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The five mutually exclusive alternatives shown below are under consideration for improving visitor safety and access to additional areas of a national park. If all alternatives are considered to last indefinitely, determine which should be selected on the basis of a rate of return analysis using an interest rate of 10%.

 

                                                                   A         B         C         D        E_
        First cost, $ millions                          -20      -40      -35     -90      -70
        Annual M&O cost, $ millions              -2      -1.5     -1.9      -1.1     -1.3

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