Question: The estimated negative cash flows for three design alternatives are shown below. The MARR is 12% per year and the study period is four years.

 The estimated negative cash flows for three design alternatives are shown

The estimated negative cash flows for three design alternatives are shown below. The MARR is 12% per year and the study period is four years. Which alterative is best based on the IRR method? Doing nothing is not an option FOY A $80.100 Alternative B 565,000 C 572,400 0 Capital investment Annual expenses 1-4 7,800 12,950 10.250 Which alternative would you choose as a base one? Choose the correct answer below. O A. Alternative C OB. Alternative A O C. Alternative B Analyze the difference between the base alterative and the second-choice alternative IRR AO V)=%. (Round to two decimal places.) Analyze the difference between the current base alternative and the third-choice alterative IRRA W)=%. (Round to two decimal places.) Which alternative should be selected? Choose the correct answer below. O A. Alternative C OB. Alternative A O C. Alternative B

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