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- Alternative B requires an up-front investment of $2,000. It will produce annual returns of $305 at the end of each year for 12 years
- Alternative B requires an up-front investment of $2,000. It will produce annual returns of $305 at the end of each year for 12 years $192. In what order should you compare the alternatives? Conduct an IRR analysis to determine which investment, if either, should you invest in. Click here to access the TVM Factor Table calculator. Carry all interim calculations to 5 decimal places and then round your final answers to 1 decimal place. The tolerance is 0.3. Following the order that was selected above, compare the first two alternatives. Calculate the IRR. i= What alternative should be chosen according to the received value? should be chosen. Next, compare the last two alternatives. Calculate the IRR. i=]% Thus, is preferred
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