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Category > Economics Posted 02 Jun 2017 My Price 7.00

In the design of a special-use structure

In the design of a special-use structure, two mutually exclusive alternatives are under consideration. These design alternatives are as follows:

 

D1                                          D2

Capital investment                          $50,000                                $120,000

Annual expenses                              $9,000                                  $5,000

Useful life (years)                             20                                           50

Market value (at end                      $10,000                                $20,000

of useful life)

If perpetual service from the structure is assumed, which design alternative do you recommend? The MARR is 10% per year.

 

Answers

Alpha Geek
(8)
Status NEW Posted 02 Jun 2017 07:06 AM My Price 7.00

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file 1496389033-2282438_1_636318826415588659_equivalent-annual-cost.xlsx preview (179 words )
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