Problem 6-35 (algorithmic) Question Help Three mutually exclusive investment alternatives are being considered. The estimated cash flows for each alternative are given below. The study period is 30 years and the firm's MARR is 5% per vear, Assume repeatability and reinvestment of positive cash balances at 5% per year a. What is the simple payback period for Alternative 1 b. What is the annual worth of Alternative 2? c. What is the IRR of the incremental cash flows of Alternative 2 compared to Alternative 1? d. Which alternative should be selected? nd EEB Click the icon to view the datatable for the additional information about the alternatives. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 5% per year. a. The simple payback period for Alternative 1 isyears. (Round up to the nearest whole number.) - X More Info Alt. 1 Alt, 2 Alt. 3 $65,000 $30,000 $53,500 10,000 5 years Capital Investment Annual Costs $20,000 -$14,000 $25,000 10,000 5 years - $45,000 - $27,000 $35,000 10,000 6 years Annual Revenues nd of Useful Life Useful Life IRR 51.3% 26,1% 6,9% Print Done En ? More Info Discrete Compounding; i=5% Single Payment Uniform Series Uniform Gradient Gradient Capital Recovery Factor Compound Gradient Present Uniform Compound Sinking Series Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor Worth Factor Factor To Find F To Find F Given A To Find P To Find P Given A To Find A Given F To Find A Given P To Find P To Find A Given P Given F Given G Given G N F/P P/F FIA A/P P/G A/G P/A A/F 0000 1.0000 0.0000 1 1.0500 0.9524 0.9524 1.0500 0.0000 2 1.1025 0.9070 0500 1.8594 0.4878 0.5378 0.9070 0.4878 1.1576 0.8638 1525 2.7232 0.3172 0.3672 0.9675 3 2.6347 4 0.8227 3.5460 1.2155 43101 0.2320 0.2820 5.1028 1.4391 5 1,2763 0.7835 5.5256 4.3295 0.1810 0.2310 8.2369 1.9025 6 0.7462 .8019 5.0757 11.9680 1.3401 0.1470 0.1970 2.3579 0.7107 1420 5.7864 7 1.4071 0.1228 0.1728 16.2321 2.8052 8 1.4775 0.6768 9.5491 6.4632 0.1047 0.1547 20.9700 3.2445 9 1.5513 7.1078 0.0907 0.1407 0.6446 11.0266 26.1268 3.6758 1.6289 7.7217 0.1295 10 0.6139 12.5779 0.0795 31.6520 4.0991 Print Done