Use Incremental ROR Analysis to select the best project. Question 1 1 A B D E Cost $4000 $2000 $6000 $1000 $9000 Annual benefit 639 410 761 117 750 Useful life, in years 20 20 20 20 i* 15% 20% 11.1% 9.9% 5.45% 20

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Use Incremental ROR Analysis to select the best project.
Question 1
1
A
В
D
E
Cost
$4000
$2000
$6000
$1000
$9000
Annual benefit
639
410
761
117
750
Useful life, in years
20
20
20
20
20
i*
15%
20%
11.1%
9.9%
5.45%
MARR=6%; (P/A, 6%, 20) = 11.47
a) Select / Order alternatives
b) Perform incremental analyses to pick the best alternative.
Transcribed Image Text:Use Incremental ROR Analysis to select the best project. Question 1 1 A В D E Cost $4000 $2000 $6000 $1000 $9000 Annual benefit 639 410 761 117 750 Useful life, in years 20 20 20 20 20 i* 15% 20% 11.1% 9.9% 5.45% MARR=6%; (P/A, 6%, 20) = 11.47 a) Select / Order alternatives b) Perform incremental analyses to pick the best alternative.
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