Question: Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is 7.5%/year. EOY A001 B002 C003 0 -$230 -$110 -$164

Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is 7.5%/year.

EOY A001 B002 C003

0 -$230 -$110 -$164

1 $100 $60 $86 2 $110 $60 $86 3 $120 $60 $86 4 $130 $70 $86

What is the present worth of each alternative?

Alternative A001:

Alternative B002:

Alternative C003:

Which alternative should be recommended?

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