The PW-based relation for the incremental cash flow series to find ?i* between the lower first-cost alternative X and alternative Y has been developed.

0 = ? 40,000 + 9000(P?A,?i*,10) ? 2000(P?F,?i*,10)

Determine the highest MARR value for which Y is preferred over X. Write the single-cell spreadsheet function that displays ?i*.


Solve for ?i* by trial and error or spreadsheet

?i* = 18.0% per year

Any MARR value greater than 18% favors X

Function: = RATE(10,9000,-40000,-2000) displays 18.05%

Trades & Technology

You might also like to view...

Define a worst-case boundary.

What will be an ideal response?

Trades & Technology

Describe air and its composition

What will be an ideal response?

Trades & Technology

Compared to standard-growing birds, slow-growing birds:

a. are more tender c. have increased water-holding capacity b. have less protein d. all answers

Trades & Technology

The length of the normal swine cycle (numbers of head) tends to be longer than the

typical cycle for cattle. A. True B. False

Trades & Technology