Do Nothing → A A→C C→ B A Capital investment -$15,000 -$2,000 -$3,000 A Annual 4,000 900 460 revenues A Annual costs A Market value A IRR -1,000 -150 100 6,000 -2,220 3,350 12.7% 10.5% ???
Do Nothing → A A→C C→ B A Capital investment -$15,000 -$2,000 -$3,000 A Annual 4,000 900 460 revenues A Annual costs A Market value A IRR -1,000 -150 100 6,000 -2,220 3,350 12.7% 10.5% ???
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
For the following table, assume a MARR of 10% per year and a useful life for each alternative of six years that equals the study period. The rank-order of
alternatives from least capital investment to greatest capital investment is Do Nothing → A → C → B. Complete the
alternative. (a) Do Nothing (b) Alternative A (c) Alternative B (d) Alternative C.
Transcribed Image Text:Do
Nothing → A A→C C→ B
A Capital
investment
-$15,000
-$2,000 -$3,000
A Annual
4,000
900
460
revenues
A Annual costs
A Market value
A IRR
-1,000
-150
100
6,000
-2,220
3,350
12.7%
10.5%
???
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