Question: Four mutually exclusive projects are being considered for a community gym. The life of equipment in the gym is expected to be 50 years, and

Four mutually exclusive projects are being considered for a community gym. The life of equipment in the gym is expected to be 50 years, and the sponsoring agency's is 15% per year. Annual income from the gym has been estimated by a committee and is shown below. Use the IRR method (incrementally) to select the best project.

Alternatives Initial investment $3,000 $2,500 $7.000 $2,700 Annual income $500 $400 $1,000 $450 ROI 16% 17.5% 10.5% 16%

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