What is the FW of Alternative A and B?Which alternative should be recommended? solve normally, no excel. thanks! The table provides a comparison of two investment alternatives, A and B, across various financial metrics:1. **Capital Investment:** - Alternative A: $23,000 - Alternative B: $25,0002. **Annual Expenses:** - Alternative A: $8,852 - Alternative B: $9,5033. **Annual Revenue:** - Alternative A: $15,492 - Alternative B: $17,3814. **Market Value at End of Useful Life:** - Alternative A: $2,000 - Alternative B: $2,1005. **Life:** - Alternative A: 4 years - Alternative B: 12 years6. **Internal Rate of Return (IRR):** - Alternative A: 19.3% - Alternative B: 15.7%This information can help in evaluating the cost-effectiveness and profitability of each investment option.

Future worth is the value of present cashflow at the future date compounded at the specified rate.…

Alternative A Alternative B Сapital $23,000 $25,000 Investment Annual expenses $8,852 $9,503 Annual revenue $15,492 $17,381 Market Value at $2,000 $2,100 end of useful life Life 4 years 12 years IRR 19.3% 15.7%

Alternative A Alternative B Сapital $23,000 $25,000 Investment Annual expenses $8,852 $9,503 Annual revenue $15,492 $17,381 Market Value at $2,000 $2,100 end of useful life Life 4 years 12 years IRR 19.3% 15.7%

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.3.2P

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Concept explainers

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.

Question

What is the FW of Alternative A and B?

Which alternative should be recommended?

solve normally, no excel. thanks!

The table provides a comparison of two investment alternatives, A and B, across various financial metrics:

1. **Capital Investment:**
- Alternative A: $23,000
- Alternative B: $25,000

2. **Annual Expenses:**
- Alternative A: $8,852
- Alternative B: $9,503

3. **Annual Revenue:**
- Alternative A: $15,492
- Alternative B: $17,381

4. **Market Value at End of Useful Life:**
- Alternative A: $2,000
- Alternative B: $2,100

5. **Life:**
- Alternative A: 4 years
- Alternative B: 12 years

6. **Internal Rate of Return (IRR):**
- Alternative A: 19.3%
- Alternative B: 15.7%

This information can help in evaluating the cost-effectiveness and profitability of each investment option.

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