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Engineering Economy 16th Edition by William Sullivan ,Elin Wicks, Koelling,
Edition 16ISBN: 978-0133439274Engineering Economy 16th Edition by William Sullivan ,Elin Wicks, Koelling,
Edition 16ISBN: 978-0133439274 Exercise 1
Refer to Example 6-7 and develop the incremental cash flows of Alternative B minus Alternative A, (B-A), over a 12-year study period. Do multiple interest rates exist for (B-A) cash flows
EXAMPLE 6-7
The following data have been estimated for two mutually exclusive investment alternatives, A and B , associated with a small engineering project for which revenues as well as expenses are involved. They have useful lives of four and six years, respectively. If MARR = 10% per year, show which alternative is more desirable by using equivalent-worth methods (computed by hand and by spreadsheet). Use the repeatability assumption.
EXAMPLE 6-7
The following data have been estimated for two mutually exclusive investment alternatives, A and B , associated with a small engineering project for which revenues as well as expenses are involved. They have useful lives of four and six years, respectively. If MARR = 10% per year, show which alternative is more desirable by using equivalent-worth methods (computed by hand and by spreadsheet). Use the repeatability assumption.
Explanation
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Cash flows of two alternative projects -...
Engineering Economy 16th Edition by William Sullivan ,Elin Wicks, Koelling,
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