1)Find the IRR of the difference between the base alternative and the second-choice alternative:

IRR ( II - III ) = ??% (Round to one decimal place.)

2)Find the IRR of the difference between the current base alternative and the third-choice alternative:

IRR ( ?? - ?? ) = ??% (Round to one decimal place.)

3)Which alternative should be chosen?

A. Alternative I

B. Alternative II

C.Alternative III

A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network. At EOY 10, alternative I// would be replaced with another alternative /// having the same installed cost and net annual revenues. If MARR is 9% per year, which alternative (if any) should be chosen? Use the incremental IRR procedure Installed cost Net annual revenue Salvage value Useful life Calculated IRR $40,000 $30,000 $20,000 $6,300 $5,650 $5,300 20 years 14.7% 20 years 18.2% 10 years 23.2% Which alternative would you choose as a base? Choose the correct answer below O A. Alternative I B. AlternativeI O C. Alternative Find the IRR of the difference between the base alternative and the second-choice alternative IRR ( Il IRR ( // -m )=96, (Round to one decimal place.) )= | - /// %. (Round to one decimal place.)