You cats summer kitty-cottage needs a new roof you are, Ask an Expert

Economics

You cat's summer kitty-cottage needs a new roof. You are considering the following two proposals and feel a 15-year analysis period is in line with your cat' remaining lives. (There is no salvage value for old roofs.)

Thatch slate

First cost $20 $40

Annual upkeep 5 2

Service life, in year 3 5

a) Construct a choice table for interest rates from 0% to 100%

b) Which roof should you choose if your MARR is 12% what is the actual value of the IRR on the incremental cost?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9747435

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