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.)
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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