A Two hazardous environment facilities are being evaluated, with the projected life of each facility being 10 years. The company
uses a MARR of 15%. Using rate of return analysis, which alternative should be selected?
Alternative A Alternative B
First Cost, $ 615,000 300,000
O & M Cost, $ 10,000 25,000
Annual Benefits, $ 158,000 92,000
Salvage Value, $ 65,000 -5,000
(A) Alt. B
(B) Neither
(C) Alt. A
(D) Either Alt. A or Alt. B
Alternative A Alternative B
First Cost, $ 615,000 300,000
O & M Cost, $ 10,000 25,000
Annual Benefits, $ 158,000 92,000
Salvage Value, $ 65,000 -5,000
(A) Alt. B
(B) Neither
(C) Alt. A
(D) Either Alt. A or Alt. B
1 answer:
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