q8)

These data for 4 mutually exclusive alternatives are given in the table. Assume a life of 7 years.

Alt. A Alt. B Alt. D Alt. C Do Nothing $5,000 $0 $1,700 $0 $6,500 $1,700 Initial Cost $7,000 EUAB $2,200 Salvage $500 Value $600 $500 $0 Yields the following graph: $10,000 $8,000 ABC $6,000 $4,000 $2,000 SO 0% 5% 10% 15% 25% 405 45% 50% ($2,000) ($4,000) a. Based on the graph above, construct a Choice Table for the Alternatives given, including the "Do Nothing" option. Please include interest rates rounded to the hundredth (2 decimal places). Find the exact interest rates b. If the MARR for a company was 10%, which Alternative would they choose? Alt. A Alt. B Alt. D Alt. C Do Nothing $5,000 $0 $1,700 $0 $6,500 $1,700 Initial Cost $7,000 EUAB $2,200 Salvage $500 Value $600 $500 $0 Yields the following graph: $10,000 $8,000 ABC $6,000 $4,000 $2,000 SO 0% 5% 10% 15% 25% 405 45% 50% ($2,000) ($4,000) a. Based on the graph above, construct a Choice Table for the Alternatives given, including the "Do Nothing" option. Please include interest rates rounded to the hundredth (2 decimal places). Find the exact interest rates b. If the MARR for a company was 10%, which Alternative would they choose