Which alternative in the table below should be selected when the MARR = 7% per year? The life of each alternative is 10 years. Increment Considered A(A – DN) $800 A(B-A) $700 A(C – B) $1, 100 A(D – C) $1,300 A Investment cost A (Annual Revenues less Costs) IRR on A Investment Cost $140 $108 $161 $130 11,7% 8.8% The IRR on A(C - B) is | %. (Round to one decimal place.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 6E
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Which alternative in the table below should be selected when the MARR =7% per year? The life of each alternative is 10 years.
A(A - DN)
A(B - A)
$700
A(C - B)
$1,100
Increment Considered
A(D - C)
$1.300
A Investment cost
A (Annual Revenues less
Costs)
$800
$140
$108
$161
$130
IRR on A Investment Cost
11.7%
8.8%
?
The IRR on A(C - B) is || %. (Round to one decimal place.)
Transcribed Image Text:Which alternative in the table below should be selected when the MARR =7% per year? The life of each alternative is 10 years. A(A - DN) A(B - A) $700 A(C - B) $1,100 Increment Considered A(D - C) $1.300 A Investment cost A (Annual Revenues less Costs) $800 $140 $108 $161 $130 IRR on A Investment Cost 11.7% 8.8% ? The IRR on A(C - B) is || %. (Round to one decimal place.)
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