ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Given the data for two different alternatives in the table below, determine the best alternative using
the incremental rate of return (AROR) analysis. MARR =9%.
A
B
First cost
$15,000 $20,000
O&M Cost/year 1,600
900
Benefit/year
8,000
9,000
Salvage value
3,000
4,600
Life in years
4
4
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Transcribed Image Text:Given the data for two different alternatives in the table below, determine the best alternative using the incremental rate of return (AROR) analysis. MARR =9%. A B First cost $15,000 $20,000 O&M Cost/year 1,600 900 Benefit/year 8,000 9,000 Salvage value 3,000 4,600 Life in years 4 4
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