For the following table, assume a MARR of 9% 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 IRR analysis by selecting the preferred alternative. A Capital investment & Annual revenues A Annual costs & Market value AIRR The IRR of A (C-B) is (Round to one decimal place.) Do Nothing - A -$15,000 4,000 - 1,000 6,000 12.7% A C -$2,000 900 -150 -2,220 10.5% C-B -$2,500 460 -125 3,350 ???

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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For the following table, assume a MARR of 9% 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 → ACB. Complete the IRR analysis by selecting the preferred
alternative.
A Capital investment.
A Annual revenues
A Annual costs
A Market value
9:
A
IRR
The IRR of A (C-B) is (Round to one decimal place.)
Do Nothing A
-$15,000
4,000
- 1,000
6,000
12.7%
A C
-$2,000
900
-150
-2,220
10.5%
C-B
-$2,500
460
- 125
3,350
???
Transcribed Image Text:For the following table, assume a MARR of 9% 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 → ACB. Complete the IRR analysis by selecting the preferred alternative. A Capital investment. A Annual revenues A Annual costs A Market value 9: A IRR The IRR of A (C-B) is (Round to one decimal place.) Do Nothing A -$15,000 4,000 - 1,000 6,000 12.7% A C -$2,000 900 -150 -2,220 10.5% C-B -$2,500 460 - 125 3,350 ???
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