Which increment should be examined first in incremental rate ofreturn analysis, if MARR = 10.0%?Do-nothing ABCDFirst cost0$8,000 $4,500 $8,500$6,000Annual01,3879141,661 935benefitLife10 yrsROR11.5%15.5%14.5%9.0%A-BOB-AOA-COB-C

Introduction:Step I : Eliminate those alternatives which have ROR less than MARR.Step II : Arrange…

Which increment should be examined first in incremental rate of return analysis, if MARR = 10.0%? Do-nothing A B C D First cost 0 Annual 0 1,387 914 $8,000 $4,500 $8,500 $6,000 935 1,661 benefit Life 10 yrs ROR 11.5% 15.5% 14.5% 9.0% OA-B B-A OA-C OB-C

Which increment should be examined first in incremental rate of return analysis, if MARR = 10.0%? Do-nothing A B C D First cost 0 Annual 0 1,387 914 $8,000 $4,500 $8,500 $6,000 935 1,661 benefit Life 10 yrs ROR 11.5% 15.5% 14.5% 9.0% OA-B B-A OA-C OB-C

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

Which increment should be examined first in incremental rate of
return analysis, if MARR = 10.0%?
Do-nothing A
B
C
D
First cost
0
$8,000 $4,500 $8,500
$6,000
Annual
0
1,387
914
1,661 935
benefit
Life
10 yrs
ROR
11.5%
15.5%
14.5%
9.0%
A-B
OB-A
OA-C
OB-C

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