The initial investment costs and the "annual revenues less expenses" of three investment alternatives (X, Y and Z) are given below. The useful life of each alternative is four years. They have no salvage value. The MARR is 10%. Y Capital investment (S) Annual revenues less expenses (S) 11,000 30,000 36,500 35,000 12,000 13,100 Find the best alternative by a) present worth analysis b) (incremental) internal rate of return analysis

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The initial investment costs and the "annual revenues less expenses" of three
investment alternatives (X, Y and Z) are given below. The useful life of each
alternative is four years. They have no salvage value. The MARR is 10%.
Capital investment ($)
Annual revenues less expenses (S) 11,000
36,500
13,100
30,000
35,000
12,000
Find the best alternative by
a) present worth analysis
b) (incremental) internal rate of return analysis
Transcribed Image Text:The initial investment costs and the "annual revenues less expenses" of three investment alternatives (X, Y and Z) are given below. The useful life of each alternative is four years. They have no salvage value. The MARR is 10%. Capital investment ($) Annual revenues less expenses (S) 11,000 36,500 13,100 30,000 35,000 12,000 Find the best alternative by a) present worth analysis b) (incremental) internal rate of return analysis
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