engineering economic analysis

FratBro23
Category:
Economics
Price: $35 USD

Question description

 problem1:

There are three mutually exclusive investment proposals for R&D Development Company (see table). What decision should be made using equivalent uniform annual worth analysis if the minimum attractive rate of return is 12%? Use a horizon of 25 years for its analyses.


A

B

Initial Cost

$3.0K

$3.3K

$4.6K

Annual O&M Cost

750

200

400

Annual Income

1200

750

1100

Salvage Value

1.0K

0.4K

0.5K

Problem 2

The cash flows for four different alternatives are given in table below. If MARR 10%, which is the best alternative using the incremental rate of return (∆ROR) analysis?

 

Alt. A

Alt. B

Alt. C

First Cost, $

5,000

1,000

2,500

Annual Savings, $

650

0

350

Life, Years

20

5

10

Salvage Value

5,000

1,760

2,500


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UIUC
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