CH.8 - CH.8 ive X should be selected because the rate of...

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CH.8 8.7cted because the rate of return on the increment is known to be lower than 20% nly Alt Y has ROR greater than the MARR tive should be selected because neither one has a ROR gretaer than the MARR increment is less than 26%, but an incremental investment determine if the rate of return on the increment equals or exceeds the MARR of 20% estment analysis is not required because it is known that R on the increment is greater than 22%. 8.16 n Cost (a) Cost (b) CF(b-a) 0 $(15,000.00) $(25,000.00) $(10,000.00) 1 $(1,600.00) $(400.00) $1,200.00 2 $(13,600.00) $(400.00) $13,200.00 3 $(1,600.00) $(400.00) $1,200.00 4 $1,400.00 $3,600.00 $2,200.00 IRR = 30.3% MARR = 20% Machine B should be selected. 8.28 n A B C D 0 $(30,000.00) $(36,000.00) $(41,000.00) $(53,000.00) 1 $4,000.00 $5,000.00 $8,000.00 $10,500.00 2 $4,000.00 $5,000.00 $8,000.00 $10,500.00 3 $4,000.00 $5,000.00 $8,000.00 $10,500.00 4 $4,000.00 $5,000.00 $8,000.00 $10,500.00 5 $4,000.00 $5,000.00 $8,000.00 $10,500.00 6 $4,000.00 $5,000.00
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CH.8 - CH.8 ive X should be selected because the rate of...

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