Determine which alternative is best using incremental rate

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Reference no: EM13882028

A WiMAX wireless network integrated with a satellite network can provide connectivity to any location within 10 km of the base station. The number of sectors per base station can be varied to increase the bandwidth. An independent cable operator is considering three bandwidth alternatives. Assume a life of 20 years and a MARR of 10% per year to determine which alternative is best using an incremental rate of return analysis.

Bandwidth,
Mbps

First Cost,
$1000

Operating Cost, $1000 per Year

Annual Income, $1000 per Year

44

-40,000

-2000

5000

55

-46,000

-1000

5000

88

-61,000

-500

8000

Reference no: EM13882028

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