3. Assuming a MARR of 20%, use incremental analysis (defender vs challenger approach) to select the...
3. (20 Points) Choose the best alternative based on challenger-defender principle for incremental cash flow, when the MARR-15%. Assume 7 years of useful life for each alternative. Hint: Set EUAW-0; 10% < i< 20 % C A $180,000 $14,400 $68,000 $12,000 S235,000 $44,000 $89,000 $21,000 Initial Cost $184,000 Salvage Value $38,300 Annual Benefit $75,300 Yearly 0&M Cost $21,000 3. (20 Points) Choose the best alternative based on challenger-defender principle for incremental cash flow, when the MARR-15%. Assume 7 years of...
Which alternative of the three alternatives below should be selected if the MARR = 6%? Use the following to compare projects: a. PW analysis b. B/C ratio for each project c. Incremental B/C ratio assessment (define Defender and Challenger in each analysis) d. IRR for each project over its respective service life e. Incremental IRR using the same (a common) number of years for each project Are any of the projects acceptable? Are any not acceptable? Which project would you...
Which alternative of the three alternatives below should be selected if the MARR = 6%? Use the following to compare projects a.PW analysis b.B/C ratio for each project c.Incremental B/C ratio assessment (Be sure to define Defender and Challenger in each incremental analysis) d.IRR for each project over its respective service life e.Incremental IRR using the same (a common) number of years for each project Are any of the projects acceptable? Are any not acceptable? Which project would you recommend...
Consider four alternatives, each of which has an 8-year useful life: A B C D Initial cost $100 $80 $60 $50 Annual benefit $12.20 $12.00 $9.70 $12.20 Salvage Value $75.00 $50.00 $50.00 $0 a) Construct a plot with interest rate on the x axis and PW on the y axis. Plot the PW vs interest rate for all 4 alternatives. Label graphs and make sure the fonts are readable. If your computer chooses very light colors,...