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The PW-based relation for the incremental cash flow series to find Δi* between the lower first-cost...

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


0 = -50,000 + 9000(P/A,Δi*,10) + ( -1000(P/F,Δi*,10))0 = -50,000 + 9000(P/A,Δi*,10) +  -1000(P/F,Δi*,10)


Determine the highest MARR value for which Y is preferred over X.

Any MARR value greater than  % favors Y.

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Answer #1

Determine the highest MARR value for which Y is preferred over X.

=RATE(10,9000,-50000,-1000)
=12.260%

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