The following five different mutually exclusive alternatives are considered to last indefinitely and the company's MARR = 14%. A B -10,000 -25,000 2,000 4,000 20.0 20.0 First cost, $ Annual net income, $/year Overall ROR, % C -15,000 2,900 19.3 E -70,000 -50,000 10,000 14.3 D 6,000 12.0 1. Copy the values for the five alternatives on your paper in the correct order, so you can recommend the best alternative on the basis of a rate of return analysis. Plea make sure to see the lecture for how to order the alternatives. 2. Compare the first alternative to DN (Do Nothing) and explain if you recommend the first alternative or DN.
The following five different mutually exclusive alternatives are considered to last indefinitely and the company's MARR = 14%. A B -10,000 -25,000 2,000 4,000 20.0 20.0 First cost, $ Annual net income, $/year Overall ROR, % C -15,000 2,900 19.3 E -70,000 -50,000 10,000 14.3 D 6,000 12.0 1. Copy the values for the five alternatives on your paper in the correct order, so you can recommend the best alternative on the basis of a rate of return analysis. Plea make sure to see the lecture for how to order the alternatives. 2. Compare the first alternative to DN (Do Nothing) and explain if you recommend the first alternative or DN.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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