Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. The MARR is 20% per year. At the conclusion 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.

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$28,000 $55,000 $40,000 Annual expenses $15,000 $13,000 $22,000 Annual revenues $23,000 $28,000 $32,000 $8,000 $10,000 10 years 10 years 10 years Investment cost Market value Useful life $6,000 IRR 26.4% 24.7% 22.4%