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Consider the following two mutually exclusive alternatives for reclaiming a deteriorating innercity neighborhood one of them must be chosen Notice that the IRR for both alternatives

Consider the following two mutually exclusive alternatives for reclaiming a deteriorating? inner-city neighborhood? (one of them must be? chosen). Notice that the IRR for both alternatives is 27.16?%.

a. If MARR is 15?% per? year, which alternative is? better?

b. What is the IRR on the incremental cash flow? [i.e., ??(Y-X?)]?

c. If the MARR is 27.6?% per? year, which alternative is? better?

d. What is the simple payback period for each? alternative?

e. Which alternative would you? recommend?

EOY ARR Alternative $105,000 $105,000 $50,000 $0 $51,000 $0 $70,194 $215,894 27.16% 27.16%

a. The PW of the alternative X is ?$____

The PW of the alternative Y is ?$____

b. The IRR on the incremental cash flow is ____%

c. The PW of the alternative X is $____

  The PW of the alternative Y is ?$____

d. The simple payback for the alternative X is ____years

  The simple payback for the alternative Y is ____years

EOY ARR Alternative $105,000 $105,000 $50,000 $0 $51,000 $0 $70,194 $215,894 27.16% 27.16%

 

Apr 11 2020 View more View Less

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