Assignment:
Your cat's sununer kitty-cottage needs a new roof. You feel a 15-year analysis period is in line with your cat's remaining lives. (There is no salvage value for old roofs.)
Thatch Slate
First cost $200 $350
Annual upkeep 50 20
Service life, in years 3 5
(a) Graph the EUAC or EUAW for the alternatives. 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?