Three mutually exclusive alternatives are being considered.

A B C

Initial Investment $50,000 $22,000 $15,000

Annual net income 5093 2077 1643

Computed rate of return 8% 7% 9%

Each alternative has a 20-yr useful life with no salvage value.

In constructing a choice table for interest rates from 0% to infinity,

Choice table
From	To	Go with
0%	?	?
?	?	?
?	infinity	?

Question:

A) In the first row: To ________% ?

9%

7.6%

8%

2.1%

B) In the second row: To ________% ?

		9%
		7.6%
		8%
		2.1%

C) In the first row: Go with alternative ________?

		A
		B
		C
		do nothing

D) In the second row: Go with alternative ________?

		A
		B
		C
		do nothing

E) In the third row: Go with alternative ________?

		A
		B
		C
		do nothing

F) If the minimum attractive rate of return is 7%, Go with alternative ________?

		A
		B
		C
		do nothing