The following mutually exclusive investment alter-natives have been presented to you. (See Table P6-82.) The life of

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The following mutually exclusive investment alter-natives have been presented to you. (See Table P6-82.) The life of all alternatives is 10 years. The IRR for Alternative A is most nearly:

(a) 30%

(b) 15%

(d) 10%

(e) 20%

Table P6-82:

Capital investment Annual expenses Annual revenues Market value at EOY 10 IRR $40,000 25,000 38,000 10,000 30.8% $60,000

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Question Posted: Dec 06, 2018 09:37 AM

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The following mutually exclusive investment alter-natives have been presented to you. (See Table P6-82.) The life of

Question:

Capital investment Annual expenses Annual revenues Market value at EOY 10 IRR $40,000 25,000 38,000 10,000 30.8% $60,000 $90,000 $30,000 $70,000 30,000 28,000 52,000 15,000 45,000 15,000 9.2% 10,000 ??? 10,000 42.5% 7.4%

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Engineering Economy

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