Consider four mutually exclusive alternatives, each having an 8-year useful life: A B IC D Fist cost 950 780 660 550 Uniform Annual Benefit 125 120 97 122 Salvage value 500 250 q 750 o Solution: 1. Rank of alternatives: 2. Perform the IRR analysis, yields the following table FYI: B C-D B-D A-D A-B ROR 11.41% 12.529 9.659 15.60% -4,28% 8.62% 8,179 7.45% 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 %6 and % $6 and 96; Alt. C for MARR between Alt. D for MARR between % and 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 B IC D Fist cost 950 780 660 550 Uniform Annual Benefit 125 120 97 122 Salvage value 500 250 q 750 o Solution: 1. Rank of alternatives: 2. Perform the IRR analysis, yields the following table FYI: B C-D B-D A-D A-B ROR 11.41% 12.529 9.659 15.60% -4,28% 8.62% 8,179 7.45% 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 %6 and % $6 and 96; Alt. C for MARR between Alt. D for MARR between % and Do-nothing for MARR between % and 4. If MARR = 8%, then select alternative