Consider four mutually exclusive alternatives, each having an 8-year useful life: Fist cost Uniform Annual Benefit Salvage value B 950 125 750 D 760 680 120 100 500 250 580 125 0 Solution: 1. Rank of alternatives: 2. Perform the IRR analysis, yields the following table FYI: B D C-D B-D A-D A-B ROR 11.41% 13.12% 8.96% 13.99% -3.69% 11.79% 9.23% 5.84% 3. According to the results above, we can construct the choice table between 0% and 100% as: (if no MARR is for a particular alt., use N/A in the blank.) o Alt. A for MARR between % and % o Alt. B for MARR between % and %; o Alt. C for MARR between % and %; o Alt. D for MARR between % and %; o Do-nothing for MARR between % and % 4. If MARR = 8%, then select alternative . Consider four mutually exclusive alternatives, each having an 8-year useful life: B Fist cost Uniform Annual Benefit Salvage value 950 125 750 D 760 680 580 120 100 125 500 250 Solution: O 1. Rank of alternative 2. Perform the IRR an Do nothing - A-B-C-D FYI: Do nothing - D-C-B-A D-C-B-A - Do nothing -D B-D A-D A-B-C-D- Do nothing ROR 11.41. -3.69% 11.79% 9.23 3. According to the results above, we can construct the choice table between 100% as: (if no MARR is for a particular alt., use N/A the blank.) o Alt. A for MARR between % and %; % and %; Alt. B for MARR between % and %; O Alt. C for MARR between % and %; o Alt. D for MARR between % and %. Do-nothing for MARR between ENDID hot tudi ROR 11.41% 13.12% 8.96% 13.99% -3.69% 11.79 3. According to the results above, we can construct the choice table 100% as: (if no MARR is for a particular alt., use N/A in the blank.) % and %; o Alt. A for MARR between % and o Alt. B for MARR between % and % Alt. C for MARR between % and %; Alt. D for MARR between % and %. o Do-nothing for MARR between 4. If MARR = 8%, then select alternativ B A D Do-nothing Consider four mutually exclusive alternatives, each having an 8-year useful life: B 950 125 Fist cost Uniform Annual Benefit Salvage value D 760 680 580 120 100 125 500 250 750 Solution: O A 1. Rank of alternative 2. Perform the IRR an Do nothing - A-B-CD FYI: Do nothing - D-C-B-A D-C-B-A - Do nothing -D B-D A-D A-B-C-D- Do nothing ROR 11.41. -3.69% 11.79% 9.23 3. According to the results above, we can construct the choice table between 100% as: (if no MARR is for a particular alt., use N/A in the blank.) o Alt. A for MARR between % and %; % and %; o Alt. B for MARR between % and %; Alt. C for MARR between % and %; o Alt. D for MARR between % and % Do-nothing for MARR between that MENINGI