The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. Using a MARR of 12%, alternative. Choose the correct answer below. Capital investment Annual expenses Annual revenues Market value at EOY 10 IRR Click the icon to view the interest and annuity table for discrete compounding when/= 12% per year. OA. Alternative A С D E A 8 $55,000 $90,000 $40,000 $30,000 $70,000 30,000 48,000 40,000 26,000 15,000 35,000 52,000 37,000 27,000 45,000 15,000 15,000 7.4% 25.4% 10,000 11,000 10,000 ??? 39.0% 9.2%
The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. Using a MARR of 12%, alternative. Choose the correct answer below. Capital investment Annual expenses Annual revenues Market value at EOY 10 IRR Click the icon to view the interest and annuity table for discrete compounding when/= 12% per year. OA. Alternative A С D E A 8 $55,000 $90,000 $40,000 $30,000 $70,000 30,000 48,000 40,000 26,000 15,000 35,000 52,000 37,000 27,000 45,000 15,000 15,000 7.4% 25.4% 10,000 11,000 10,000 ??? 39.0% 9.2%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. Using a MARR of 12%, choose the preferred
alternative.
Choose the correct answer below.
Capital investment
Annual expenses
Annual revenues
Market value at EOY 10
IRR
Click the icon to view the interest and annuity table for discrete compounding when /= 12% per year.
OA. Alternative A
OB. Alternative E
OC. Alternative C
OD. Alternative B
E. Alternative D
OF. Do Nothing
A
8
C
D
$55,000 $90,000 $40,000 $30,000
30,000 40,000 26,000 15,000 35,000
48,000 52,000 37,000 27,000 45,000
10,000 15,000 11,000 10,000 15,000
??? 7.4% 25.4% 39.0%
9.2%
E
$70,000
GEREED
4
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