Question: Problem 1 (40 points) - Internal Rate of Return Data for three mutually exclusive alternatives are given in the table below. Assume a life of

 Problem 1 (40 points) - Internal Rate of Return Data for

Problem 1 (40 points) - Internal Rate of Return Data for three mutually exclusive alternatives are given in the table below. Assume a life of 7 years, Alternatives A B Initial Cost $7,500 $5,000 $1,500 Uniform Annual $2,000 $1.500 Benefit $500 Salvage Value $500 SO $100 $8,000.00 $6,000.00 A $4,000.00 --- Present Worth $2,000.00 $0.00 0% 5% 10% 15% 2018 VO ($2.000,00) (54.000,00) Interest Rate Based on the graph above, construct a Choice Table. Please include interest rates rounded to the hundredth (2 decimal places). Find the exact interest rates. Do not forget the "do nothing" alternative. F Er TH 40 Problem 1 (40 points) - Internal Rate of Return Data for three mutually exclusive alternatives are given in the table below. Assume a life of 7 years, Alternatives A B Initial Cost $7,500 $5,000 $1,500 Uniform Annual $2,000 $1.500 Benefit $500 Salvage Value $500 SO $100 $8,000.00 $6,000.00 A $4,000.00 --- Present Worth $2,000.00 $0.00 0% 5% 10% 15% 2018 VO ($2.000,00) (54.000,00) Interest Rate Based on the graph above, construct a Choice Table. Please include interest rates rounded to the hundredth (2 decimal places). Find the exact interest rates. Do not forget the "do nothing" alternative. F Er TH 40

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