An engineering firm has identified five ways to cut costs in its main office. Only one of the options can be implemented, however, since each involves significant training time for staff engineers. Data are provided in the table. Each option has a lifetime of seven years, and the firm sets a MARR at 15%.
Option | |||||
| A | B | C | D | E |
Capital cost ($ million) | 2.713 | 0.375 | 1.650 | 0.088 | 0.950 |
Annual cost ($ million/yr) | 0.093 | 0.270 | 0.132 | 0.147 | 0.228 |
Annual benefit ($ million/yr) | 0.890 | 0.288 | 0.0.841 | 0.312 | 0.505 |
(a) Solve by present worth analysis.
(b) Solve by annual cash flow analysis.
(c) Solve by incremental benefit-cost ratio analysis.
(d) Solve by incremental rate of return analysis, using the full detailed procedure
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.