Use the following analyses to select a system based on the cash flows given: a) Conventional payback period b) Discounted payback period, with an MARR of 15% per year c) Present worth analysis, with an MARR of 15% per year, using an LCM analysis period First Cost, $ NCF, $/year Maximum Life, years System 1 12,000 3,000 System 2 8,000 1,000 (year 1-5) 5,000 (year 6-10) 10
Use the following analyses to select a system based on the cash flows given: a) Conventional payback period b) Discounted payback period, with an MARR of 15% per year c) Present worth analysis, with an MARR of 15% per year, using an LCM analysis period First Cost, $ NCF, $/year Maximum Life, years System 1 12,000 3,000 System 2 8,000 1,000 (year 1-5) 5,000 (year 6-10) 10
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Use the following analyses to select a system based on
the cash flows given:
a) Conventional payback period
b) Discounted payback period, with an MARR of
15% per year
c) Present worth analysis, with an MARR of 15% per
year, using an LCM analysis period
First Cost, $
NCF, $/year
Maximum Life, years
System 1
12,000
3,000
8
System 2
8,000
1,000 (year 1-5)
5,000 (year 6-10)
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7810ab07-6748-4d32-b0d1-a5d0d459c5f8%2F915f5a6b-2e79-45c2-abaf-687aebea0b15%2F32tjamd_processed.png&w=3840&q=75)
Transcribed Image Text:Use the following analyses to select a system based on
the cash flows given:
a) Conventional payback period
b) Discounted payback period, with an MARR of
15% per year
c) Present worth analysis, with an MARR of 15% per
year, using an LCM analysis period
First Cost, $
NCF, $/year
Maximum Life, years
System 1
12,000
3,000
8
System 2
8,000
1,000 (year 1-5)
5,000 (year 6-10)
10
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