技术经济学英文版演示文稿C31.pptVIP

Example 3.6 A company is considering two alternatives to satisfy its photo copying requirements. The cost of each machine is shown below: (a) (b) Initial Cost $10,000 $8,000 Annual Cost $1,000 $1,400 The annual cost includes the replacement and maintenance costs. If both machines have a life of five years and the minimum rate of return (MROR) is 10%, which project should be selected? Solution Both alternatives will perform the same functions, i.e. , they offer the same output. T