The estimated negative cash flows for three design alternatives are shown below. The MARR is 14% per year and the study period is five years. Which alternative is best based on the IRR method? Doing nothing is not an option. Capital investment Annual expenses EOY 0 A. Alternative C B. Alternative B OC. Alternative A 1-5 A $81,500 7,500 Alternative B $64,400 12,620 Which alternative would you choose as a base one? Choose the correct answer below. Analyze the difference between the base alternative and the second-choice alternative. C $71,000 10,420

The estimated negative cash flows for three design alternatives are shown below. The MARR is 14% per year and the study period is five years. Which alternative is best based on the IRR method? Doing nothing is not an option. Capital investment Annual expenses EOY 0 A. Alternative C B. Alternative B OC. Alternative A 1-5 A $81,500 7,500 Alternative B $64,400 12,620 Which alternative would you choose as a base one? Choose the correct answer below. Analyze the difference between the base alternative and the second-choice alternative. C $71,000 10,420

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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