Two investment projects are being evaluated based on their payback periods. The first alternative requires an initial inves of $760,000, has gross revenues of $118,000, annual O&M costs of $23,000 and a service life of 20 years. What is the project's discounted payback period if the MARR is 8% per year? OA. 8.3 years OB. 13.3 years O C. 16.7 years O D. 9.4 years If the second alternative has a payback period of 8 years, which alternative should be preferred based on the payback per OA. The first alternative B. The second alternative

Two investment projects are being evaluated based on their payback periods. The first alternative requires an initial inves of $760,000, has gross revenues of $118,000, annual O&M costs of $23,000 and a service life of 20 years. What is the project's discounted payback period if the MARR is 8% per year? OA. 8.3 years OB. 13.3 years O C. 16.7 years O D. 9.4 years If the second alternative has a payback period of 8 years, which alternative should be preferred based on the payback per OA. The first alternative B. The second 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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