Three mutually exclusive projects are being considered:

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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8-23 Three mutually exclusive projects are being
considered:
Transcribed Image Text:8-23 Three mutually exclusive projects are being considered:
First cost
Uniform annual
benefit
Salvage value
Useful life (years)
A
$1000
250
200
5
BIORC
с
$2000 $3000
350
525
300
6
400
7
Assume identical replacements.
(a) Construct a choice table for interest rates from
0% to 100%.
00 (b) If 8% is the desired rate of return, which project
should be selected?
Transcribed Image Text:First cost Uniform annual benefit Salvage value Useful life (years) A $1000 250 200 5 BIORC с $2000 $3000 350 525 300 6 400 7 Assume identical replacements. (a) Construct a choice table for interest rates from 0% to 100%. 00 (b) If 8% is the desired rate of return, which project should be selected?
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