please answer all three they go together 5 points The cash flows for three mutually exclusive alternatives are given in table below, MARR-4% Alt A Alt B All C Initial cost. $15,000 27,000 24,000 Annual benefit. 4,500 7,600 6,500 ROR 15% 13% 11% Life in years 5 5 5 AROR for the first increment (Alt. C-Alt. A) is ? 3.36% 3.09% 2.85% O 3.62% 2 5 points Following the question above, determine the AROR for the second increment (Alt. B-Alt-A) if A was retained during the first incremental analysis. 10.85% O 9.19 % 8.12% 5.78%

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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M12
please answer all three they go together
1 5 points
The cash flows for three mutually exclusive alternatives are given in table below. MARR-4%
Alt A
Alt B
Alt C
Initial cost. $15,000 27,000
Annual benefit. 4.500 7,600
ROR
13 %
24,000
6,500
11 %
15%
Life in years
5
5
5
AROR for the first increment (Alt. C-Alt. A) is?
3.36%
3.09%
2.85%
O 3.62%
2
5 points
Following the question above, determine the AROR for the second increment (Alt. B-Alt-A) if A was retained during the first incremental analysis.
10,85%
O 9.19 %
8.12%
5.78%
3
5 points
Following question 1 & 2, the best alternative for a MARR of 4.0% using the incremental rate of return analysis is
Alt. A
Alt. B
Alt. C
Do nothing
OO
Transcribed Image Text:please answer all three they go together 1 5 points The cash flows for three mutually exclusive alternatives are given in table below. MARR-4% Alt A Alt B Alt C Initial cost. $15,000 27,000 Annual benefit. 4.500 7,600 ROR 13 % 24,000 6,500 11 % 15% Life in years 5 5 5 AROR for the first increment (Alt. C-Alt. A) is? 3.36% 3.09% 2.85% O 3.62% 2 5 points Following the question above, determine the AROR for the second increment (Alt. B-Alt-A) if A was retained during the first incremental analysis. 10,85% O 9.19 % 8.12% 5.78% 3 5 points Following question 1 & 2, the best alternative for a MARR of 4.0% using the incremental rate of return analysis is Alt. A Alt. B Alt. C Do nothing OO
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