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Alt. A Alt. B Alt. C Initial Cost $7,500 $5,000 $2,000 EUAB $1,800 $1,400 $700 Salvage $500 $200 $100 Value Life 10 10 10

Alt. A Alt. B Alt. C Initial Cost $7,500 $5,000 $2,000 EUAB $1,800 $1,400 $700 Salvage $500 $200 $100 Value Life 10 10 10

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
ChapterA: The Use Of Mathematics In Principles Of Economics
Section: Chapter Questions
Problem 3RQ: Exercise A3 What dome slices of a pie chart represent?
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$12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 5% 10% 15% 20% 25% 30% 35% ($2,000) ($4,000) Alternative A Alternative B Alternative C a. Based on the graph above and table, construct a Choice Table for the Alternatives given including the "Do Nothing" option. Find the exact interest rate for the first cross over point and estimate the others. Use the graph to narrow the interest rate. b. If the MARR for a company was 15%, which Alternative would they choose?
Transcribed Image Text:$12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 5% 10% 15% 20% 25% 30% 35% ($2,000) ($4,000) Alternative A Alternative B Alternative C a. Based on the graph above and table, construct a Choice Table for the Alternatives given including the "Do Nothing" option. Find the exact interest rate for the first cross over point and estimate the others. Use the graph to narrow the interest rate. b. If the MARR for a company was 15%, which Alternative would they choose?
Alt. A Alt. B Alt. C Initial Cost $7,500 $5,000 $2,000 EUAB $1,800 $1.400 $700 Salvage $500 $200 $100 Value Life 10 10 10
Transcribed Image Text:Alt. A Alt. B Alt. C Initial Cost $7,500 $5,000 $2,000 EUAB $1,800 $1.400 $700 Salvage $500 $200 $100 Value Life 10 10 10
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