You have been requested to recommend one of the mutually exclusive industrial sanitation control systems that are given below. If MARR is 18% per year, which system would you select? Assume that not having to re-invest in five year is an added benefit of the Vacuum-led. Use the B-C method. Capital investment Annual receipts less expenses Life in years Click the icon to view the interest and annuity table for discrete compounding when the MARR is 18% per year. (Round to the two decimal places.) An incremental B-C ratio is Alternative Gravity-fed $24,200 9,000 6 D Vacuum-led $41,800 9,000 12

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 19E
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You have been requested to recommend one of the mutually exclusive industrial sanitation control systems that are given below. If MARR is 18% per year, which system would you select? Assume that not having to
re-invest in five year is an added benefit of the Vacuum-led. Use the B-C method.
Alternative
Gravity-fed
$24,200
9,000
6
Capital investment
Annual receipts less expenses
Life in years
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 18% per year.
An incremental B-C ratio is. (Round to the two decimal places.)
Vacuum-led
$41,800
9,000
12
Transcribed Image Text:You have been requested to recommend one of the mutually exclusive industrial sanitation control systems that are given below. If MARR is 18% per year, which system would you select? Assume that not having to re-invest in five year is an added benefit of the Vacuum-led. Use the B-C method. Alternative Gravity-fed $24,200 9,000 6 Capital investment Annual receipts less expenses Life in years Click the icon to view the interest and annuity table for discrete compounding when the MARR is 18% per year. An incremental B-C ratio is. (Round to the two decimal places.) Vacuum-led $41,800 9,000 12
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