Question: Two mutually exclusive alternatives are being considered. If the minimum attractive rate of return is 8%, which alternative should be selected? Solve the problem by

Two mutually exclusive alternatives are being considered.

Year -$2500 -S6000 +746 +1664 +1664 2 +746 +746 +1664 +746 +1664 +746 5 +1664 3.


If the minimum attractive rate of return is 8%, which alternative should be selected? Solve the problem by

(a) Present worth analysis "

(b) Annual cash flow analysis

(c) Rate of return analysis

Year -$2500 -S6000 +746 +1664 +1664 2 +746 +746 +1664 +746 +1664 +746 5 +1664 3.

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