ENGINEERING ECONOMIC ANALYSIS 12TH EDITION CHAP 8 PR 27: Three mutually exclusiv

Question

ENGINEERING ECONOMIC ANALYSIS 12TH EDITION CHAP 8 PR 27:

Three mutually exclusive alternatives may replace the current equipment.

Year

A

B

C

0

-$20000

-$24000

-$25,000

1

10000

10000

5000

2

5000

10000

5000

3

10000

10000

5000

4

6000

5000

25000

a) Construct a truth table for interest rates from 0-100%.

b) Using 12% MARR, which alternative should be selected?

************PLEASE PROVIDE EXCEL FORMULAS IF TABLE IS USED FOR CALCULATIONS*******

I am having trouble doing this....

Year

A

B

C

0

-$20000

-$24000

-$25,000

1

10000

10000

5000

2

5000

10000

5000

3

10000

10000

5000

4

6000

5000

25000

Explanation / Answer

ENGINEERING ECONOMIC ANALYSIS 12TH EDITION CHAP 8 PR 27: Three mutually exclusiv

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