A solid-waste recycling plant is considering two types of storage bins. Use ROR evaluation and an MARR of 18% per year to determine which should be selected. Storage Bin First Cost, $ AOC, $ per year Salvage Value, $ Life, Years Answer to the nearest whole dollars for currency, and the nearest percentage (one decimal place) for interest, and a 1 ($32,000) ($4,000) $2,000 3 2 ($45,000) ($2,500) $2,600 6

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Chapter1: Making Economics Decisions
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A solid-waste recycling plant is considering two types of storage bins. Use ROR evaluation and an MARR of
18% per year to determine which should be selected.
Storage Bin
First Cost, $
AOC, $ per Year
Salvage Value, $
Life, Years
Answer to the nearest whole dollars for currency, and the
nearest percentage (one decimal place) for interest, and a
whole number for the number of years. Do NOT enter
commas. DO enter minus signs for negative values.
B-2) Which project should be selected based on IRR?
02
01
1
($32,000)
($4,000)
$2,000
3
2
($45,000)
($2,500)
$2,600
6
Transcribed Image Text:A solid-waste recycling plant is considering two types of storage bins. Use ROR evaluation and an MARR of 18% per year to determine which should be selected. Storage Bin First Cost, $ AOC, $ per Year Salvage Value, $ Life, Years Answer to the nearest whole dollars for currency, and the nearest percentage (one decimal place) for interest, and a whole number for the number of years. Do NOT enter commas. DO enter minus signs for negative values. B-2) Which project should be selected based on IRR? 02 01 1 ($32,000) ($4,000) $2,000 3 2 ($45,000) ($2,500) $2,600 6
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