# 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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