A new 10,000-square-meter warehouse next door tothe Tyre

Chapter , Problem 8-25

(choose chapter or problem)

A new 10,000-square-meter warehouse next door tothe Tyre Corporation is for sale for $450,000. Theterms offered are $100,000 down with the balancebeing paid in 60 equal monthly payments basedon 15% interest. It is estimated that the warehouse (a)Construct a choice table for interest rates from0% to 100%.(b)MARR=15%. Using incremental rate ofreturn analysis,which alternative, if any, shouldthe company choose?

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