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Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given below. The MARR is 18% per year. At the end of the useful life

Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given below. The MARR is 18% per year. At the end of the useful life, the investment will be sold. A decision-maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method. А Investment cost Annual expenses Annual revenues Market value Useful life IRR $29,000 $16,000 $23,000 $5,500 10 years 21.2% B $54,000 $13,000 $30,000 $8,500 10 years 29.4% С $37,500 $23,000 $32,000 $11.000 10 years 21.5% Click the icon to view the interest and annuity table for discrete compounding when i = 18% per year. The PW of alternative A is $(Round to the nearest dollar.) The PW of alternative B is $(Round to the nearest dollar.) The PW of alternative C is $(Round to the nearest dollar.) What alternative should be selected? Choose the correct answer below. O A. Alternative B OB. Alternative A O C. Alternative C OD. None of these alternatives
More Info X N 1 2 3 4 5 6 7 Discrete Compounding; 1= 18% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP P/F FIA P/A A/F 1.1800 0.8475 1.0000 0.8475 1.00 1.3924 0.7182 2.1800 1.5656 0.4587 1.6430 0.6086 3.5724 2.1743 0.2799 1.9388 0.5158 5.2154 2.6901 0.1917 2.2878 0.4371 7.1542 3.1272 0.1398 2.6996 0.3704 9.4420 3.4976 0.1059 3.1855 0.3139 12.1415 3.8115 0.0824 3.7589 0.2660 15.3270 4.0776 0.0652 4.4355 0.2255 19.0859 4.3030 0.0524 5.2338 0.1911 23.5213 4.4941 0.0425 6.1759 0.1619 28.7551 4.6560 0.0348 7.2876 0.1372 34.9311 4.7932 0.0286 8.5994 0.1163 42.2187 4.9095 0.0237 10.1472 0.0985 50.8180 5.0081 0.0197 11.9737 0.0835 60.9653 5.0916 0.0164 Capital Recovery Factor To Find A Given P A/P 1.1800 0.6387 0.4599 0.3717 0.3198 0.2859 0.2624 0.2452 0.2324 0.2225 0.2148 0.2086 0.2037 0.1997 0.1964 9 10 11 12 13 14 15 Print Done

Apr 12 2021 View more View Less

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