Question: 3. Suppose that Alternative A, and A2 are two mutually exclusive alternatives with the cost and revenue estimates given in following table. End of Year

 3. Suppose that Alternative A, and A2 are two mutually exclusive

3. Suppose that Alternative A, and A2 are two mutually exclusive alternatives with the cost and revenue estimates given in following table. End of Year Alternative A1 Alternative A2 0 $-4,999.4 $-10,000 1-10 $2,800 Rate of Return (ROR) 25% ? ? Use the minimum attractive rate of return of 15% to determine the following statements. a) (10 Points) By using the present worth method, calculate the revenues for alternative A1. b) (10 Points) Find the value of ROR for alternative A2. c) (10 Points) Which alternative should be selected? 4.(15 Points) How long must $1000 remain invested at 4% per month so that $200 per month can be withdrawn forever? Answer the question by drawing a cash flow diagram

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