Consider four mutually exclusive alternatives, each having an 8-year useful life: A IC D 1168 890 780 Fist cost Uniform Annual Benefit Salvage value 530 1251 125 1201 100 250 750 500 0 Solution: 1. Rank of alternatives: o ID 2. Perform the IRR analysis, yields the following table FYI: A B c. C-D B-D A-D A-B 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.) ROR o Alt. A for MARR between % and %; o Alt. B for MARR between % and %; o Alt. C for MARR between % and %; o Alt. D for MARR between % and %; o Do-nothing for MARR between % and %. 4. If MARR = 8%, then select alternative Consider four mutually exclusive alternatives, each having an 8-year useful life: A IC D 1168 890 780 Fist cost Uniform Annual Benefit Salvage value 530 1251 125 1201 100 250 750 500 0 Solution: 1. Rank of alternatives: o ID 2. Perform the IRR analysis, yields the following table FYI: A B c. C-D B-D A-D A-B 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.) ROR o Alt. A for MARR between % and %; o Alt. B for MARR between % and %; o Alt. C for MARR between % and %; o Alt. D for MARR between % and %; o Do-nothing for MARR between % and %. 4. If MARR = 8%, then select alternative