Question: A project has three alternatives as shown below. Using rate of return analysis answer the following questions about this analysis knowing your company has an
A project has three alternatives as shown below. Using rate of return analysis answer the following questions about this analysis knowing your company has an MARR of 5%. Type your answers rounded to the nearest whole percent using the following format (XX%), without decimal places (i.e: 2.1% write as 02%). Show your work on your worksheet. Alternative A B C Initial Cost 3000 3600 5020 Annual Savings 447 590 783 Lifetime (years) 10 10 10
Part 1) What is the rate of return for Option A? (XX%) :
Part 2) What is the rate of return for Option B? (XX%) :
Part 3) What is the rate of return for Option C? (XX%) :
Part 4) What is the incremental rate of return for Option B-A? (XX%) :
Part 5) What is the incremental rate of return for Option C-B? (XX%) :
Part 6) Which option do you recommend (type in the letter of the alternative A, B, or C) :
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
