Given the following mutually$-$exclusive alternatives and a

Minimum Attractive Rate of Return $($MARR$)$ of $7\%,$

which should be chosen?

$$ Solve as PV$,$ FV and AW $(3$ separate analyses for each

Design$)$ and show which Design gets chosen in each.

SHOW YOUR WORK $($including cash flow diagram$)$ with

tool formulas, not tables at this time to ensure you$$re

understanding the concepts.

Year Design A Design B Design C

$0($$$2500)($$$2700)($$$3000)$

$1$ $$0$ $$650$ $$250$

$2$ $$0$ $$650$ $$500$

$3$ $$0$ $$650$ $$750$

$4$ $$0$ $$650$ $$1000$

$5$ $$3100$ $$700$ $$1250$

Total $$600$ $$600$ $$750$