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Question: a firm is considering three mutually exclusive alternatives as part...

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A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network. At EOY 10, alternative /// would be replaced with another alternative Ill having the same installed cost and net annual revenues. If MARR is 10% per year, which alternative (if any) should be chosen? Use the incremental IRR procedure $40,000 $30,000 $20,000 $6,400 $5,700 $5,300 Installed cost Net annual revenue Salvage value Useful lifee Calculated IRR 20 years 15.0% 20 years 18.3% 10 years 23.2% Which alternative would you choose as a base? Choose the correct answer below OA. Alternative lll B. Alternative O C. Alternative Il Find the IRR of the difference between the base alternative and the second-choice alternative |%. (Round to one decimal place.) Find the IRR of the difference between the current base alternative and the third-choice alternative |96. (Round to one decimal place.) IRR (| -| ) | IRR Δ ( | |-| -| Which alternative should be chosen? Choose the correct answer below O A. Alternative I B. Alternative Il O c. Alternative Ii

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