ALPHA	BETA	GAMMA
1. Initial Cost ($)	$1,000,000	1,200,000	1,500,000
2. Revenues ($)	$540,000 annually	$565,000 at EOY1 decreasing by $5,000 annually thereafter.	$575,000 from EOY1 to EOY5 inclusively; $580,000 at EOY6 which decreases by 2% annually thereafter
3. Operating Costs ($)	$260,000 at EOY1 increasing by $2,500 annually thereafter.	$230,000 at EOY1 increasing by 1% annually thereafter	$291,000 at EOY1 increasing by $2,000 annually thereafter
4. End-of-life salvage value ($)	200,000	235,000	260,000
5. Useful life (years)	5 years	5 years	10 years

All parameter values are fictitious. EOY = End-of-year The industry standard for retirement homes is 4 years. MARR = 10%

a. The best retirement home based on the Net Present Worth (NPW) method is

b. Based on the simple payback method, ALPHAs recovery period (in years) 3 is between

c. Based on the simple payback method, BETAs project balance after three (3) years is between

d. Based on the discounted payback method, GAMMAs recovery period (in years) is between

e. Based on the discounted payback method, ALPHAs project balance after 3 years is between