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Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them must be chosen). Notice that the IRR for both
Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them must be chosen). Notice that the IRR for both alternatives is 27.20%. a. If MARR is 12% per year, which alternative is better? b. What is the IRR on the incremental cash flow [i.e., Delta(Y-X)]? c. If the MARR is 27.5% per year, which alternative is better? d. What is the simple payback period for each alternative? d. Which alternative would you recommend? Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when i = 12% per year. a. The PW of the alternative X is $. (Round to the nearest hundreds.)
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