Conduct a ROR analysis for the above information. If MARR= 18%, which project should be chosen and what is its corresponding ROR Investment cost Annual maintenance cost Project A 20,000 2,000 Salvage value 5,000 Useful life (years) 20 O Project B, ROR - 19.69% Project A, ROR=20.69% O Project B, ROR=20.69% Project A, ROR = 19.69% Project B 10,000 4,000 1,000 20

ENGR.ECONOMIC ANALYSIS
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Conduct a ROR analysis for the above information. If MARR= 18%, which project
should be chosen and what is its corresponding ROR
Investment cost
Annual
maintenance cost
Salvage value
Project A
20,000
2,000
5,000
Useful life (years) 20
O Project B, ROR - 19.69%
Project A, ROR=20.69%
O Project B, ROR=20.69%
Project A, ROR = 19.69%
Project B
10,000
4,000
1,000
20
Transcribed Image Text:Conduct a ROR analysis for the above information. If MARR= 18%, which project should be chosen and what is its corresponding ROR Investment cost Annual maintenance cost Salvage value Project A 20,000 2,000 5,000 Useful life (years) 20 O Project B, ROR - 19.69% Project A, ROR=20.69% O Project B, ROR=20.69% Project A, ROR = 19.69% Project B 10,000 4,000 1,000 20
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