J.R. Enterprises would like to choose one of the following plans for expansion.
ID: 1092003 • Letter: J
Question
J.R. Enterprises would like to choose one of the following plans for expansion. Using present worth analysis, find the best alternative among the three alternatives and the Do-Nothing.
Alt. A
Alt. B
Alt. C
Initial Cost
$10,000
$21,000
$8,000
EUAB
$6,000
$7,000
$4,000
EUAC
$1,500
$1,000
$2,000
Salvage Value
$2,000
$8,000
$3,000
Life
2 Years
3 Years
2 Years
Use a MARR of 10%.
Alt. A
Alt. B
Do-Nothing
Alt. C
Alt. A
Alt. B
Alt. C
Initial Cost
$10,000
$21,000
$8,000
EUAB
$6,000
$7,000
$4,000
EUAC
$1,500
$1,000
$2,000
Salvage Value
$2,000
$8,000
$3,000
Life
2 Years
3 Years
2 Years
Explanation / Answer
B.
Alt. B
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