Two investment projects are being evaluated based on their payback periods. The first alternative requires an initial investment of $300,000, has gross revenues of $55,000, annual O&M costs of $11,000 and aservice life of 15 years What is the project's discounted payback period if the MARR is 8% per year?OA. 12.6 yearsOB. 74 yearsOC. 6.3 yearsOD. 102 yearsIf the second alternative has a payback period of 6 years, which alternative should be preferred based on the payback period?OA. The first alternativeOB. The second alternative

The objective of the question is to calculate the discounted payback period for the first investment…

Answered: Two investment projects are being…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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