Given the following:                                      Alt. A            Alt. B            Alt. C Initial Cost                   $25,000         $40,000          $32,000   Benefits     Year 1         5000              2000               6000                    Year 2        5500              9000               6000                    Year 3        6000              8000               6000                    Year 4        6500              7000               6000                    Year 5         7200              6000               7000         Salvage Value        4000              8000               6500   MARR       8% Find the best alternative using uniform annual cash flow analysis

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Given the following:

                                     Alt. A            Alt. B            Alt. C

Initial Cost                   $25,000         $40,000          $32,000

 

Benefits     Year 1         5000              2000               6000

                   Year 2        5500              9000               6000

                   Year 3        6000              8000               6000

                   Year 4        6500              7000               6000

                   Year 5         7200              6000               7000

        Salvage Value        4000              8000               6500

 

MARR       8%

Find the best alternative using uniform annual cash flow analysis.

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