Ai* on Incremental Cash Flow when Compared with Proposal, % Proposal i*, % Proposal Investment, $ X1 X2 X3 Х4 XI -20,000 ? X2 -30,000 13.33 2. ? ? X3 -50,000 14 20 X4 -75,000 12 ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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An engineer initiated a rate of return analysis for the infinite-life revenue proposals detailed below, but was unable to complete the evaluation.
a. Fill in the eleven blanks in the table.
b. What proposal(s) should be selected if they are independent and the MARR is 21% per year?
c. What proposal should be selected if they are mutually exclusive and the MARR is 13% per year.

Ai* on Incremental Cash Flow
when Compared with Proposal, %
Proposal
i*, %
Proposal
Investment, $
X1
X2
X3
Х4
XI
-20,000
?
X2
-30,000
13.33
2.
?
?
X3
-50,000
14
20
X4
-75,000
12
?
Transcribed Image Text:Ai* on Incremental Cash Flow when Compared with Proposal, % Proposal i*, % Proposal Investment, $ X1 X2 X3 Х4 XI -20,000 ? X2 -30,000 13.33 2. ? ? X3 -50,000 14 20 X4 -75,000 12 ?
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