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D Question 10 0.06 pts Two mutually exclusive alternatives are being considered. Alternative A has an initial cost of $100 and uniform annual benefit of
D Question 10 0.06 pts Two mutually exclusive alternatives are being considered. Alternative A has an initial cost of $100 and uniform annual benefit of $19.93. The useful life is 10 years, and the IRR is 15% Alternative B has an initial cost of $50 and uniform annual benefit of $11.93. The useful life is 10 years, and the IRR is 20% The MARR is 8%. Which of the following equation(s) will solve for the IRR that allows you to make a correct decision based on Rate of Return Analysis? O PW(A) = -100 + 19.93(P/A. i", 10) PW(B) = -50+ 11.93(P/A, i. 10) O PWIA) = -100 + 19.93(P/A. 8%, 10) PW(B) = -50 + 11.93(P/A, 8%, 10) O PW = - 50 - 8(P/A, I, 10) O PW = 50 + 8(P/A, i, 10) O PW = - 50 + 8(P/A, P', 10) PW = 50 + 8(P/A, 8%, 10) O PWIA) = 100 - 19.93(P/A, i, 10) PW(B) = 50 - 11.93(P/A. i". 10) O PWIA) = 100 - 19.93(P/A, 8%, 10) PW(B) = 50 - 11.93(P/A. 8%, 10) Choose Alternative B, since the IRR is the largest. O Choose both Alternative A and B, since IRR is greater than the MARR
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