6. Three mutually exclusive alternatives requiring different investment levels are being considered. The life of all three is 20 years with no salvage value. The MARR is 15%. Find the alternative that should be selected using IRR or Present Worth on the incremental investment. (One or the other, your choice.)

Al A2 A3

Investment $ 60,000 $ 30,000 $ 100,000

Cash flow per year $ 10,692 $ 6,162 $ 17,000

Return on total inv. 17.1% 20.0% 16.1%

	1.	A3
	2.	A2
	3.	A1