Please do 7-62 and 7-67. Please do both questions and show all the formulas used. Thanks

7-62 If 7% is considered the minimum attractive rate of return, which alternative should be selected? Year 0 1 2 A -$14,500 $5,900 $5,900 $5,900 B -$23,000 $9,200 $9,200 $9,200 3 Page Break 7-62 Time A B B-A Cash Flow Cash Flow Cash Flow IRRA IRR B = Incremental IRR B A or B? Why? 7-67 The owner of a corner lot wants to find a use that will yield a desirable return on his investment. If the owner wants a minimum attractive rate of return on his investment of 15%, which of the two alternatives would you recommend? Both alternatives have a 20-year life and no salvage value. First Cost Annual Property Taxes Annual Net Income Build Fast Food $800,000 $30,000 +$150,000 Build Gas Station $1,200,000 $50,000 +$200,000 7-67 Fast Food Gas Gas-Food 5 IRR Food IRR Gas = Incremental IRR Gas PV FC PMT NPER RATE 8 Food or Gas? Why? MARR 159