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At the end of 4 years another b may be purchased with the

Assignment Help Mechanical Engineering
Reference no: EM13621878

A firm is considering two alternatives that have no slavage value.

Alternative A:

Initial cost- $10,700

Uniform Annual Benefits- $2,100

Life in years- 8

Alternative B:

Initial cost- $5500

Uniform annual benefits- $1800

Life- 4

At the end of 4 years, another B may be purchased with the same costs, benefits, etc.

a) Construct a choice table for interest rates from 0% to 100%

b) If the MARR is 10%, which alternative should be selected?

Reference no: EM13621878

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