Can you compute the PW of alternative A, the AW of alternative B, the FW of Alternative C, and the PW of alternative D? Also for a MARR of 12%, rank the MEAs from most profitable to least profitable. HINT: You will need to perform additional calculations before answering this question. AlternativesABCᎠCapital investment$150,000$85,000$75,000$120,000Annual revenues$28,000$16,000$15,000$22,000Annual expenses$1,000$550$500$700Market Value (EOY 10)$20,000$10,000$6,000$11,000Life (years)IRR1010101013.4%13.5%14.8%12.8%The MARR = 12% per year. Use this information to answer the following questions.

The key cash flow analyses for comparing alternatives include the PW method, FW method, and AW…

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ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Can you compute the PW of alternative A, the AW of alternative B, the FW of Alternative C, and the PW of alternative D? Also for a MARR of 12%, rank the MEAs from most profitable to least profitable. HINT: You will need to perform additional calculations before answering this question.

Alternatives
A
B
C
Ꭰ
Capital investment
$150,000
$85,000
$75,000
$120,000
Annual revenues
$28,000
$16,000
$15,000
$22,000
Annual expenses
$1,000
$550
$500
$700
Market Value (EOY 10)
$20,000
$10,000
$6,000
$11,000
Life (years)
IRR
10
10
10
10
13.4%
13.5%
14.8%
12.8%
The MARR = 12% per year. Use this information to answer the following questions.

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