The table below summarizes the comparison between four mutually exclusive alternatives using the IRR method. The MARR is 10%. Which alternative should be the base allemative in the first step of the incremental analysis? Alternative Initial Cost Annual Income IRR P $110.000 $21.500 14.5% Q $130,000 $31,200 20.2% OA Atemative R because it has the lowest initial cost OB. Allemative 5 because it has the largest initial cost OC. Allamative Q because it has the highest IRR OD. Alemative P because it has the lowest IRR R $95,000 $20,000 16.5% $354,000 $74,000 16.3%

ENGR.ECONOMIC ANALYSIS
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The table below summarizes the comparison between four mutually exclusive alternatives using the IRR method. The MARR is 10%. Which alternative should be the base aftemative in the first step
of the incremental analysis?
Alternative
Initial Cost
Annual Income
IRR
P
$110,000
$21.500
14.5%
Q
$130,000
$31,200
20.2%
OA Atemative R because it has the lowest initial cost
OB. Alternative 5 because it has the largest initial cost
OC. Allamative Q because it has the highest IRR
D. Alemative P because it has the lowest IRR
R
$95,000
$20,000
16.5%
$
$354,000
$74,000
16.3%
Transcribed Image Text:The table below summarizes the comparison between four mutually exclusive alternatives using the IRR method. The MARR is 10%. Which alternative should be the base aftemative in the first step of the incremental analysis? Alternative Initial Cost Annual Income IRR P $110,000 $21.500 14.5% Q $130,000 $31,200 20.2% OA Atemative R because it has the lowest initial cost OB. Alternative 5 because it has the largest initial cost OC. Allamative Q because it has the highest IRR D. Alemative P because it has the lowest IRR R $95,000 $20,000 16.5% $ $354,000 $74,000 16.3%
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