Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency’s MARR is 11% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the IRR method to select the best jogging track.

Note: Show final answer in percentage value. Limit your answer to one decimal place. Ex: 12.5%

Answer the following:

IRR Alternative C = Blank 1%

IRR Alternative D = Blank 2%

The Preferred Alternative (Write only the letter if A,B,C or D )= Blank 3

Transcribed Image Text:

Initial Cost Annual benefits IRR A $62,000 $10,000 16.1% B $52,000 $8,000 15.4% C $150,000 $25,000 D $55,000 $7,800 ? Initial Cost Annual benefits IRR A $62,000 $10,000 16.1% B $52,000 $8,000 15.4% C $150,000 $25,000 D $55,000 $7,800 ?

Answer rating: 100% (QA)

A B C D Initial cost 62000 52000 150000 55000 Annual benef... View the full answer