Use the following alternatives to develop an incremental analysis choice table and answer the following questions. Alternative A Initial Cost - $15,000 Annual Revenue (Year 1-15) - $2500 Salvage Benefit (Year 15) - $2000 Alternative B Initial Cost - $25,000 Annual Revenue (Year 1-15) - $3500 Salvage Benefit (Year 15) - $5000 1. Determine the incremental rate of return IRRHigh-Low. Provide your answer as a percentage and round to the nearest hundredth. 2. Determine the internal rate of return for the higher cost alternative IRRHigh. Provide your answer as a percentage and round to the nearest hundredth. 3. Determine the internal rate of return for the lower cost alternative IRRLow. Provide your answer as a percentage and round to the nearest hundredth. Please answer all 3.
Use the following alternatives to develop an incremental analysis choice table and answer the following questions.
Alternative A
Initial Cost - $15,000
Annual Revenue (Year 1-15) - $2500
Salvage Benefit (Year 15) - $2000
Alternative B
Initial Cost - $25,000
Annual Revenue (Year 1-15) - $3500
Salvage Benefit (Year 15) - $5000
1. Determine the incremental
2. Determine the
3. Determine the internal rate of return for the lower cost alternative IRRLow. Provide your answer as a percentage and round to the nearest hundredth.
Please answer all 3.
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