Question

Question (10 Points):
E & A Construction must replace a piece of heavy earth moving equipment. Information
concerning the three best alternatives is summarized below. IfE and Ahas a minimum attractive
rate of return (MARR) of 11%, which alternative should be chosen? Use IRR incremental analysis.
First Cost
Annual Operating & Maintenance Cost
Annual Benefits
Salvage Value
Useful life
Cat Volvo Liebherr
$52,000 $63,000 $105,000
$15,000 $9,000 $12,000
$38,000 $31,000 $37,000
$13,000 $19,000 $22,000
4
6
12​

Answer 1

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