Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of return analysis to determine which alternative should be selected? A B D 4000 2000 1000 639 410 117 15% 20% 10% Cost Annual benefit Rate of return C 6000 761 11% E 9000 785 6%

Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use incremental rate of return analysis to determine which alternative should be selected? A B D 4000 2000 1000 639 410 117 15% 20% 10% Cost Annual benefit Rate of return C 6000 761 11% E 9000 785 6%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

I need solve this question in Engineering economics

Each of the five alternatives has 20-year useful lives. If the MARR is 8%, use
incremental rate of return analysis to determine which alternative should be selected?
B
D
2000
1000
410
117
20%
10%
Cost
Annual benefit
Rate of return
A
4000
639
15%
C
6000
761
11%
E
9000
785
6%

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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Step 3: Determine incremental IRR (A-B)

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