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Consider four mutually exclusive alternatives, each having an 8-year useful life: A B C Fist cost 890 780 530 Uniform Annual Benefit 125 120 100

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Consider four mutually exclusive alternatives, each having an 8-year useful life: A B C Fist cost 890 780 530 Uniform Annual Benefit 125 120 100 125 Salvage value 750 500 1168 250 0 Solution 1. Rank of alternatives: 2. Perform the IRR analysis, yields the following table FYI: B D C-D B-D A-D A-B ROR 7.24% 9.59% 5.94% 16.75% -10.00% 2.99% 2.04%) 0.56% 3. According to the results above, we can construct the choice table between 0% and 100% as: (if no MARR is for a particular alt, use N/A in the blank.) Alt. A for MARR between % and Alt. B for MARR between % and Alt. C for MARR between Wand Alt. D for MARR between % and Do nothing for MARR between % and 4. I MARR = 8%, then select alternative Consider four mutually exclusive alternatives, each having an 8-year useful life: A B C Fist cost 890 780 530 Uniform Annual Benefit 125 120 100 125 Salvage value 750 500 1168 250 0 Solution 1. Rank of alternatives: 2. Perform the IRR analysis, yields the following table FYI: B D C-D B-D A-D A-B ROR 7.24% 9.59% 5.94% 16.75% -10.00% 2.99% 2.04%) 0.56% 3. According to the results above, we can construct the choice table between 0% and 100% as: (if no MARR is for a particular alt, use N/A in the blank.) Alt. A for MARR between % and Alt. B for MARR between % and Alt. C for MARR between Wand Alt. D for MARR between % and Do nothing for MARR between % and 4. I MARR = 8%, then select alternative

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