Two mutually exclusive alternatives are being considered. Alternative A has an initial cost of $100 and uniform annual benefit of $19.93. The useful life is 10 years, and the IRR is 15% Alternative B has an initial cost of $50 and uniform annual benefit of $11.93. The useful life is 10 years, and the IRR is 20%

The MARR is 8%. Which of the following equation(s) will solve for the IRR that allows you to make a correct decision based on Rate of Return Analysis?

PW(A) = -100 + 19.93(P/A, i*, 10) PW(B) = -50 + 11.93(P/A, i*, 10)

PW(A) = -100 + 19.93(P/A, 8%, 10) PW(B) = -50 + 11.93(P/A, 8%, 10)

PW = - 50 - 8(P/A, i*, 10)

PW = 50 + 8(P/A, i*, 10)

PW = - 50 + 8(P/A, i*, 10)

PW = 50 + 8(P/A, 8%, 10)

PW(A) = 100 - 19.93(P/A, i*, 10) PW(B) = 50 - 11.93(P/A, i*, 10)

PW(A) = 100 - 19.93(P/A, 8%, 10) PW(B) = 50 - 11.93(P/A, 8%, 10)

Choose Alternative B, since the IRR is the largest.