4-(Extra Credit) Assume you must choose between the two alternatives below and that a MARR of 12% is required. Which alternative is best? Hint: the IRR for both options are greater than 12% Year 0 1 2 4 A -$11,000 -$6,000 $8,000 $8,000 $8,000 B -$10,000 $4,000 $4,000 $4,000 $4,000

4-(Extra Credit) Assume you must choose between the two alternatives below and that a MARR of 12% is required. Which alternative is best? Hint: the IRR for both options are greater than 12% Year 0 1 2 4 A -$11,000 -$6,000 $8,000 $8,000 $8,000 B -$10,000 $4,000 $4,000 $4,000 $4,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4-(Extra Credit) Assume you must choose between the two alternatives below and that a MARR of 12%
is required. Which alternative is best? Hint: the IRR for both options are greater than 12%
Year
0
1
2
3
4
A
-$11,000
-$6,000
$8,000
$8,000
$8,000
B
-$10,000
$4,000
$4,000
$4,000
$4,000

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