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2. The following mutually exclusive investment alternatives are available for a company which has 1,000,000 TL available. MARR of the company is 8% per year.

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2. The following mutually exclusive investment alternatives are available for a company which has 1,000,000 TL available. MARR of the company is 8% per year. Determine which alternative is the better by using the incremental rate of return method (Show clearly rate of return equations. You may use short cut method with PW values) (30 Points) Year 0 1 2 3 4 5 6 Alternative 1 -800,000 150,000 150,000 200,000 200,000 200,000 250,000 Alternative 2 -400,000 115,000 105,000 95,000 85,000 75,000 80,000 Alternative 3 -250,000 85,000 85,000 75,000 75,000

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