c Ang.cengage.com Mogel B NGAGE | MINDTAP Search this cour HWB eBook Present Value of Costs The Aubey Coffee Company is evaluating the within plant distribution system for its new roasting, grinding, and packing plant. The two alternatives are (1) a conveyor system with a high initial cost but low annual operating costs and (2) several forklift trucks, which costess but have considerably higher operating costs. The decision to construct the plant has already been made, and the choice here will have no effect on the overall revenues of the project. The cost of capital for the plant is 10%, and the projects' expected ret costs are listed in the following table: Expected Net Cost Conveyor 0 -$500,000 -$200,000 1 -120,000 - 160,000 2 -120,000 -160,000 3 -120,000 -160,000 4 - 120.000 -160,000 5 -20,000 -160,000 Year Forklin a. What is the IRR of each alternative? The IRR of alternative is no The IRR alternative indoned b. What is the present value of costs of each alternative? Do not round intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to enter negative values, if any, Alternatives Alternative 25 Which method should be chosen? PV method should be chosen Hide Feedback Partially Correct MacBook Air 20 FB $ * % 5 & 7 8 9 O R TY U C