Question: 2. Two cost only alternatives are being considered by a firm that uses and interest rate of 11.0% to analyze options. Option A has an

2. Two cost only alternatives are being considered by a firm

2. Two cost only alternatives are being considered by a firm that uses and interest rate of 11.0% to analyze options. Option A has an investment of 1.235 million and annual cost of 220,000. Option B has an investment of 1.850 million and annual cost of 185,000. Both are expected to be usable for 18 periods. a. What is the NPW of option A? b. What is the NPW of option B? c. If the firm uses financial analysis to guide decisions, which alternative is preferred

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