Question: = 12% Estimation of two cash flow for two mutually exclusive investment with MARR annually End of year Alternative 1 ($) Alternative 2 (S) 0

= 12% Estimation of two cash flow for two mutually exclusive

= 12% Estimation of two cash flow for two mutually exclusive investment with MARR annually End of year Alternative 1 ($) Alternative 2 (S) 0 - 2,500 - 4,000 1 750 1,200 2 750 1,200 3 750 1,200 4 750 1,200 5 2,750 3,200 1. What is the AW of alternative 1 ? 2. What is the IRR of alternative 1 ? 3. What is the IRR of the incremental net cash flow? 4. Given your answers for parts 1 through 3 which alternative should be selected

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