question d

Two mutually exclusive design alternatives are being considered. The estimated cash flows for each atematve are gven below. The MARR is 12% per yeac. The decivion-enaker can select one of these nitematives or decide bs select none of them Wake o recommend ation bated on the following mechods. a. Based on PW meenod, Design z is more economical. b. The modified BC ratio of Design Y is it 85 (Round to two decimal places) The modifed BC ration of Design Z is 154 (Round to twe decimal places) c. The incremental BV rato is (Round to two decimal places) Therefore, based on the AC tato method, Design z is more econsmical a. The discounted payback period of Design Y is years (Round to one decimal place) The decounted paytack period of Design Z is yeurs (Round to one decimal place) Theretore, based on the paybak period method, Oesign y would be preferred. (o) Why could the recormendations based on the paytack period method be different from the oher tho methods? A. becaune the payback period gres more weight to the cash fows aner the paytack period is because the paposck period method ignores the cash flows aher the payback period