The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. The IRR for Alternative A is most nearly equal to what value? Choose the correct answer below OA. 47 OB. 27 OC. 22 OD. 42 E. 37 Capital investment Annual expenses Annual revenues Market value at EOY 10 IRR A B C D E $55,000 $90,000 $40,000 $30,000 $70,000 29,000 40,000 24,000 14,000 35,000 50,000 52,000 38,000 27,000 45,000 10,000 15,000 42.5% 9.2% 11,000 15,000 ??? 11,000 7.4% 33.6%

The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. The IRR for Alternative A is most nearly equal to what value? Choose the correct answer below OA. 47 OB. 27 OC. 22 OD. 42 E. 37 Capital investment Annual expenses Annual revenues Market value at EOY 10 IRR A B C D E $55,000 $90,000 $40,000 $30,000 $70,000 29,000 40,000 24,000 14,000 35,000 50,000 52,000 38,000 27,000 45,000 10,000 15,000 42.5% 9.2% 11,000 15,000 ??? 11,000 7.4% 33.6%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. The IRR for Alternative A is most nearly equal to what
value?
Choose the correct answer below.
OA. 47
OB. 27
OC. 22
OD. 42
E. 37
Capital investment
Annual expenses
Annual revenues
Market value at EOY 10
IRR
A
B
C
D
E
$55,000 $90,000 $40,000 $30,000 $70,000
29,000
40,000 24,000 14,000 35,000
50,000
52,000
38,000 27,000
45,000
11,000
15,000
11,000 10,000
15,000
???
7.4% 33.6% 42.5%
9.2%
a
APE
APPL

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