The estimated negative cash flows for three design alternatives are shown below. The MARR is 13% per year and the study period is four years. Which alternative is best based on the IRR method? Doing nothing is not an option. Capital investment Annual expenses ΕΟΥ 0 A. Alternative B B. Alternative A C. Alternative C 1-4 A $82,400 6,200 Alternative B $64,500 12,100 C $71,900 9,550 Which alternative would you choose as a base one? Choose the correct answer below.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The estimated negative cash flows for three design alternatives are shown below. The MARR is 13%
per year and the study period is four years. Which alternative is best based on the IRR method?
Doing nothing is not an option.
Capital
investment
Annual expenses
EOY
0
A. Alternative B
B. Alternative A
C. Alternative C
1-4
A
$82,400
6,200
Alternative
B
$64,500
12,100
с
$71,900
9,550
Which alternative would you choose as a base one? Choose the correct answer below.
Transcribed Image Text:The estimated negative cash flows for three design alternatives are shown below. The MARR is 13% per year and the study period is four years. Which alternative is best based on the IRR method? Doing nothing is not an option. Capital investment Annual expenses EOY 0 A. Alternative B B. Alternative A C. Alternative C 1-4 A $82,400 6,200 Alternative B $64,500 12,100 с $71,900 9,550 Which alternative would you choose as a base one? Choose the correct answer below.
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