The best alternative from the given alternatives.
Answer to Problem 50P
Alternative C is the best.
Explanation of Solution
Given for alternative A :
Cost is
Annual benefit is
Useful life is infinite years.
Calculation:
Calculate the EUAW for A.
Write the Equation for EUAC for A.
Calculate the factor
Substitute
Substitute
Given for alternative B :
Cost is
Annual benefit is
Useful life is
Calculations:
Calculate the EUAW for B.
Write the Equation for EUAC for B.
Write the equation for factor
Substitute
Substitute
Substitute
Given for alternative C :
Cost is
Annual benefit is
Useful life is
Calculations:
Calculate the EUAW for C.
Write the equation for EUAC for C.
Write the equation for factor
Substitute
Substitute
Substitute
Conclusion:
Here, EUAW for the alternative C is largest. Hence, alternative C is the best alternative.
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Chapter 6 Solutions
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