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Correct answers are shown, please show me how to get them, thank you. Three mutually exclusive design alternatives are being considered The estimated cash fows
Correct answers are shown, please show me how to get them, thank you.
Three mutually exclusive design alternatives are being considered The estimated cash fows for each altermative are given below The MARR is 10% per year At the end of the useful life, the investment will be sold A de son-maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method. Investment cost Annual revenue Annual cost Useful life IRR Pw $275,000 $140 000 $370000 $79,920 $48.972$93.455 $15,984$8,831$21,009 15 years 15 years 15 years 22.1% 280% 179% $364,360 $261,410$354.460 (aj Which alternative is the most economicarr Choose the correct answer below D A. Alternative C O B. Alternative B erC. Alternative A O D. None of the alternatives (b) Calculate the discounted payback period of each alternative The discounted payback period of alternative A is 59 years (Round to the nearest decimal) The discounted payback period of alternative B is 45 years (Round to the nearest decimal ) The discounted payback period of atemative Cis 75 years (Round to the nearest decimal ) Based on the payback period which alternative is the most preferred? Choose the correct answer below A. Alternative B ) B. Alternative A CAlternative C D. None of the alternatives (c) Why could the answers in (a) and (b) be different? because the payback period gives more weight to the cash lows after the payback period because the payback period methad ignores the cash flows after the payback periodStep by Step Solution
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