You have three investment options*: Option I Option II Option III Initial Cost $400 $1,300 $825...

 

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You have three investment options*: Option I Option II Option III Initial Cost $400 $1,300 $825 Uniform Annual Benefit $120 $200 $190 Useful Life, in years 6 12 8 *you also have the option of not picking any of them. a) (8 points) Calculate the IRR for each. b) (8 points) Make a graph depicting the EUAW (Equivalent Uniform Annual Worth) for each option over the [0%,100%] domain. c) (8 points) Make a choice table to cover the range from 0% to 100% annual interest rate. d) (6 points) If the discount rate (MARR) your company is using is 8%, how confident would you be about your decision on choosing a certain option? How about for a discount rate of 12.5%? You have three investment options*: Option I Option II Option III Initial Cost $400 $1,300 $825 Uniform Annual Benefit $120 $200 $190 Useful Life, in years 6 12 8 *you also have the option of not picking any of them. a) (8 points) Calculate the IRR for each. b) (8 points) Make a graph depicting the EUAW (Equivalent Uniform Annual Worth) for each option over the [0%,100%] domain. c) (8 points) Make a choice table to cover the range from 0% to 100% annual interest rate. d) (6 points) If the discount rate (MARR) your company is using is 8%, how confident would you be about your decision on choosing a certain option? How about for a discount rate of 12.5%?