Table 8.2 Given the financial data for three alternatives, find:
$$\begin{array} { | l | l | l | l | }
\hline & \text { A } & \mathrm { B } & \mathrm { C } \
\hline \text { Initial cost } & \$ 600 & \$ 1,200 & \$ 400 \
\hline \text { EUAB } & \mathbf { 8 2 } & 196 & 70 \
\hline \text { LiFe } && 10 Years \
\hline \text { RoR } & 6.1 \% & 10.1 \% & 11.7 \% \
\hline
\end{array}$$ MARR = 8%
ΔRoR (B-C) = 9.2%
-For a MARR of over 11.7% the best alternative is "Do nothing."

Question

Table 8.2 Given the financial data for three alternatives, find:
 $$\begin{array} { | l | l | l | l | } 
\hline & \text { A } & \mathrm { B } & \mathrm { C } \
\hline \text { Initial cost } & \$ 600 & \$ 1,200 & \$ 400 \
\hline \text { EUAB } & \mathbf { 8 2 } & 196 & 70 \
\hline \text { LiFe } &&  10 Years \
\hline \text { RoR } & 6.1 \% & 10.1 \% & 11.7 \% \
\hline
\end{array}$$ MARR = 8%
ΔRoR (B-C) = 9.2%
-For a MARR of over 11.7% the best alternative is "Do nothing."

Quizplus · Accepted Answer

The given statement is true because the ΔRoR (B-C) is 9.2%, which is less than the MARR of 8%. Therefore, the best alternative is "Do nothing."

Table 82 Given the Financial Data for Three Alternatives, Find