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 incremental B/C ratio between BETA and GAMMA is between

b. GAMMAs Internal Rate of Return (IRR) is between

c. ALPHAs Internal Rate of Return (IRR) is between

d. The incremental Internal Rate of Return (IRR) between ALPHA and GAMMA is between

e. The best retirement home based on the internal rate of return (IRR) method is