Question: Take AAA = 0 ; BBB= 35225 ; CCC = 35225 Five projects form the mutually exclusive, collectively exhaustive set under consideration. The cash flow
Take AAA = 0 ; BBB= 35225 ; CCC = 35225

Five projects form the mutually exclusive, collectively exhaustive set under consideration. The cash flow profiles for the five projects are given in the table below. Null 10 years $0 $0 A 10 years $600,000 $BBB B 10 years $800,000 $130,000 Life Initial Investment Salvage Value Annual Revenues Annual Expenses C 10 years $470,000 $65,000 D 10 years $540,000 $200,000 $0 $400,000 $600,000 $260,000 $320,000 $0 $130,000 $270,000 $CCC $120,000 Set MARR=AAA+3%, and refinance rate = AAA +6%. a) Based on an internal rate of return analysis, which alternative (if any) should be implemented? b) Plot cumulative cash flow series and interpret the Nordstrom's criterion. c) Based on an external rate of return analysis, which alternative (if any) should be implemented? d) Based on a modified internal rate of return analysis, which alternative (if any) should be implemented? Five projects form the mutually exclusive, collectively exhaustive set under consideration. The cash flow profiles for the five projects are given in the table below. Null 10 years $0 $0 A 10 years $600,000 $BBB B 10 years $800,000 $130,000 Life Initial Investment Salvage Value Annual Revenues Annual Expenses C 10 years $470,000 $65,000 D 10 years $540,000 $200,000 $0 $400,000 $600,000 $260,000 $320,000 $0 $130,000 $270,000 $CCC $120,000 Set MARR=AAA+3%, and refinance rate = AAA +6%. a) Based on an internal rate of return analysis, which alternative (if any) should be implemented? b) Plot cumulative cash flow series and interpret the Nordstrom's criterion. c) Based on an external rate of return analysis, which alternative (if any) should be implemented? d) Based on a modified internal rate of return analysis, which alternative (if any) should be implemented
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