WILL THUMBS UP

Consider four mutually exclusive alternatives, each having an 8-year useful life: A B C D 1050 780 630 580 Fist cost Uniform Annual Benefit Salvage value 125 97 122 120 500 750 250 ol Solution: 1. Rank of alternatives: O D 2. Perform the IRR analysis, yields the following table FYI: A B C C-D B-D A-D A-B ROR 9.35% 12.52% 10.74% 13.99% 0.00% 10.42% 6.02% 0.96% 3. According to the results above, we can construct the choice table between 0% and 100% as: (if no MARR is for a particular alt., use N/A in the blank.) O Alt. A for MARR between % and %; o Alt. B for MARR between % and %; Alt. C for MARR between % and %; o Alt. D for MARR between % and %; Do-nothing for MARR between % and %. 4. If MARR = 8%, then select alternative