Which alternative in the table below should be selected when the MARR = 5% per year? The life of each alternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less Costs) A(A - DN) A(B-A) A(C-B) A(D-C) $800 $500 $1,200 $1,700 $147 $109 $162 $170 IRR on A Investment Cost 12.9% 17.4% ? The IRR on A(C-B) is %. (Round to one decimal place.)
Which alternative in the table below should be selected when the MARR = 5% per year? The life of each alternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less Costs) A(A - DN) A(B-A) A(C-B) A(D-C) $800 $500 $1,200 $1,700 $147 $109 $162 $170 IRR on A Investment Cost 12.9% 17.4% ? The IRR on A(C-B) is %. (Round to one decimal place.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which alternative in the table below should be selected when the MARR = 5% per year? The life of each alternative is 10 years.
Increment Considered
A(A- DN)
A(B-A)
A(C-B)
A(D-C)
A Investment cost
$800
$500
$1,200
$1,700
A (Annual Revenues less
Costs)
$147
$109
$162
$170
IRR on A Investment Cost
12.9%
17.4%
?
?
The IRR on A(C- B) is %. (Round to one decimal place.)
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