# engineering economic analysis

Anonymous

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

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