Question: 2 a) Construct a choice table for interest rate from0% TO 100% FOR THE FOLLOWING ALTERNATIVES. Each alternative has 20 year useful life. Initial cost

2 a) Construct a choice table for interest rate from0% TO

2 a) Construct a choice table for interest rate from0% TO 100% FOR THE FOLLOWING ALTERNATIVES. Each alternative has 20 year useful life. Initial cost $2000 EUAB $5000 500 1500 $4000 400 1400 $3000 1300 3000 800 Salvage Value 2000 (35) b) c) Can you reject any alternative after calculation of rate of return or internal rate of return? Assume MARR 12%. Write the steps needed in Incremental Rate of Return Analysis. (3) 2 a) Construct a choice table for interest rate from0% TO 100% FOR THE FOLLOWING ALTERNATIVES. Each alternative has 20 year useful life. Initial cost $2000 EUAB $5000 500 1500 $4000 400 1400 $3000 1300 3000 800 Salvage Value 2000 (35) b) c) Can you reject any alternative after calculation of rate of return or internal rate of return? Assume MARR 12%. Write the steps needed in Incremental Rate of Return Analysis. (3)

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