Consider the following three alternatives with their cash flow tables. MARR=10% Alternative 2 0 1...

 

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Consider the following three alternatives with their cash flow tables. MARR=10% ΕΟΥ Alternative 2 0 1 2 3 4 5 6 7 8 Individual IRR Individual ERR when €=4% Alternative 1 -20.000 4.000 6.000 5.000 3.500 5.000 4.000 8.000 4.000 17.67% 10.76% -10.000 1.800 1.800 1.800 1.800 1.800 1.800 1.800 1.800 8.90% 6.53% Alternative 3 -30.000 6.300 8.300 7.300 5.800 7.300 6.300 10.300 6.300 17.12% 10.46% Determine the best alternative by the incremental ERR method if the external rate €= 4%. Consider the following three alternatives with their cash flow tables. MARR=10% ΕΟΥ Alternative 2 0 1 2 3 4 5 6 7 8 Individual IRR Individual ERR when €=4% Alternative 1 -20.000 4.000 6.000 5.000 3.500 5.000 4.000 8.000 4.000 17.67% 10.76% -10.000 1.800 1.800 1.800 1.800 1.800 1.800 1.800 1.800 8.90% 6.53% Alternative 3 -30.000 6.300 8.300 7.300 5.800 7.300 6.300 10.300 6.300 17.12% 10.46% Determine the best alternative by the incremental ERR method if the external rate €= 4%.

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1 In this 2 MARR 3 External rate 4 5 69 A 7 8 9 10 11 1... View the full answer