8. By taking n as 30years and using 6% both as MARR and discount rate, compare the below three possible alternatives by using NPV (net present value) and IRR methods, and recommend the best possible alternative. Types of cashflows Alternatives Alternative A Alternative B ETB 5,000,000 ETB 7,000,000 ETB 11,000,000 ЕТВ 100,000 Alternative C Initial capital Annual operation and ETB 40,000 |ЕTB 150,000 maintenance cost Annual benefit ETB 560,000 ЕТВ 800,000 ЕТВ 1,050,000
8. By taking n as 30years and using 6% both as MARR and discount rate, compare the below three possible alternatives by using NPV (net present value) and IRR methods, and recommend the best possible alternative. Types of cashflows Alternatives Alternative A Alternative B ETB 5,000,000 ETB 7,000,000 ETB 11,000,000 ЕТВ 100,000 Alternative C Initial capital Annual operation and ETB 40,000 |ЕTB 150,000 maintenance cost Annual benefit ETB 560,000 ЕТВ 800,000 ЕТВ 1,050,000
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 1Q
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