Four projects are given in the table below. Assume MARR = 10% and n = 6 for all projects shown.

	A	B	C	D
Initial Investment	6000	7000	5500	5000
Annual Return	1500	1700	1300	1200
Salvage Value	800	1000	1200	1100

a) What is the PW of Project A?

b) In what order should you compare the alternatives?

DN - B D C A

DN - A C D B

DN D C A B

DN A D C - B

c) What should be the first challenger-defender matchup?

A vs. B

C vs. DN

C vs. D

D vs. DN

d) What is the range of IRR of the first challenger-defender matchup?

Between 10% and 12%

Between 12% and 14%

Between 14% and 16%

Between 16% and 18%

e) Which alternative is the winner of the first challenger-defender matchup

A

B

C

D

DN

f) What is the final incremental IRR that you calculated when applying the challenger defender model?Round your answer to the nearest percentage. For example, if you get 12.3%, enter 12.3.

g) Which are the alternatives that become defenders after winning a challenger-defender matchup?

A, D

A, B, C

B, C

A, B, C, D

h) Which project would you recommend

A

B

C

D