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a) Find the net cash flow for B-A, and the PW for B-A at 8%. The IRR for B-A is given. 1350 1800 1500 2.000

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a) Find the net cash flow for B-A, and the PW for B-A at 8%. The IRR for B-A is given. 1350 1800 1500 2.000 4200 6225 6330 2250 78 9,000 2.850 4.425 4.830 43% 15% b) Use the above graph to determine the ranges of MARR where A would be preferred and where B would be preferred. If MARR 1596. Choose Alt. A If 15%. Choose Alt. B c) At what interest rate is the Present Worth of A equal to the Present Worth of B? At 15% 9. Four proposals are being considered by the Ajax Corporation to remedy air emissions which are above accepted levels. Proposals A1 and A2 are mutually exclusive and proposals B1 and B2 are mutually exclusive. Proposal A2 is contingent on either B1 or B2 The firm is under government order to solve their pollution problem, but only has $85,000 in available capital. MARR is 16% $30,000.00 $45000.00 $25,000.00 $60,000.00 A2 Table of Incremental IRRs (A1, B1) (A1, B2)| (A2, B1) 16% 17% 18% 18% 17% 20% 8% 15% 18% 15 16% 15% a) Find the net cash flow for B-A, and the PW for B-A at 8%. The IRR for B-A is given. 1350 1800 1500 2.000 4200 6225 6330 2250 78 9,000 2.850 4.425 4.830 43% 15% b) Use the above graph to determine the ranges of MARR where A would be preferred and where B would be preferred. If MARR 1596. Choose Alt. A If 15%. Choose Alt. B c) At what interest rate is the Present Worth of A equal to the Present Worth of B? At 15% 9. Four proposals are being considered by the Ajax Corporation to remedy air emissions which are above accepted levels. Proposals A1 and A2 are mutually exclusive and proposals B1 and B2 are mutually exclusive. Proposal A2 is contingent on either B1 or B2 The firm is under government order to solve their pollution problem, but only has $85,000 in available capital. MARR is 16% $30,000.00 $45000.00 $25,000.00 $60,000.00 A2 Table of Incremental IRRs (A1, B1) (A1, B2)| (A2, B1) 16% 17% 18% 18% 17% 20% 8% 15% 18% 15 16% 15%

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