Consider three alternatives:AB CFirst cost$50 $150 $110Uniform annual 28.8 39.6 39.6benefitUseful life, in years26 4Rate of return 10% 15% 16.4%At the end of its useful life, an identical alternative(with the same cost, benefits, and useful life) may beinstalled.All the alternatives have no salvage value. If theMARR is 12%, which alternative should be selected?(a)Solve the problem by future worth analysis.(b)Solve the problem by benefitcost ratio analysis.(c)Solve the problem by payback period.(d)If the answers in parts (a), (b), and (c) differ,explain why this is the case

# Consider three alternatives:AB CFirst cost$50 $150

## Solution for problem 9-50 Chapter 9

Engineering Economic Analysis | 12th Edition

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Engineering Economic Analysis | 12th Edition

Get Full SolutionsEngineering Economic Analysis was written by and is associated to the ISBN: 9780199339273. The answer to “Consider three alternatives:AB CFirst cost$50 $150 $110Uniform annual 28.8 39.6 39.6benefitUseful life, in years26 4Rate of return 10% 15% 16.4%At the end of its useful life, an identical alternative(with the same cost, benefits, and useful life) may beinstalled.All the alternatives have no salvage value. If theMARR is 12%, which alternative should be selected?(a)Solve the problem by future worth analysis.(b)Solve the problem by benefitcost ratio analysis.(c)Solve the problem by payback period.(d)If the answers in parts (a), (b), and (c) differ,explain why this is the case” is broken down into a number of easy to follow steps, and 84 words. Since the solution to 9-50 from 9 chapter was answered, more than 237 students have viewed the full step-by-step answer. This textbook survival guide was created for the textbook: Engineering Economic Analysis, edition: 12. This full solution covers the following key subjects: life, useful, analysis, alternatives, alternative. This expansive textbook survival guide covers 18 chapters, and 1242 solutions. The full step-by-step solution to problem: 9-50 from chapter: 9 was answered by , our top Engineering and Tech solution expert on 09/09/17, 04:21AM.

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Consider three alternatives:AB CFirst cost$50 $150