Ans a and c

three alternatives are given in the table below: Alternative A Invest Large $1,200,000 $300,000 Alternative B Invest Medium $800,000 Alternative C Invest Small $400,000 Initial Investment Cost Annual Revenue $248,000 $200,000 Annual Operation Cost $20,000 $15,000 $10,000 3 years Useful Life 9 years 6 years $300,000 $40,000 Market value at EoY 3 $600,000 $80,000 Market value at EoY 6 $300,000 $120,000 Market value at EoY 9 The company's MARR is 10%. (a) If the study period is 9 years, which alternative should be chosen? State the main assumptions made. (4 marks) (b) If the study period is 6 years, which alternative should be chosen? State the main assumptions (4 marks) made. (C) Do you expect the best alternative chosen in (a) and (b) to be always the same? Explain your (1 mark) 28C Mos answers. 40%